AGL Energy and Neoen have signed a seven-year financial offtake agreement to enable AGL to virtually charge and discharge up to 70MW of Neoen’s 100MW/200MWh Capital Battery in Canberra.
The agreement will allow AGL to mirror the services of a grid-scale battery, provide the ability to virtually charge or discharge the battery at any time, support consistency of electricity supply into the grid, and balance its customer portfolio.
AGL Chief Operating Officer, Markus Brokhof, said the partnership was part of AGL’s strategy to support the delivery of reliable and flexible energy through a variety of sources and Neoen is the ideal partner to realise their ambitious target.
“As we continue with our plans for an orderly and responsible energy transition, we’re conscious of the need for flexible capacity that meets the energy needs of our customers to ensure they continue to have access to affordable and reliable energy,” Mr Brokhof said.
AGL Energy said it is committed to strike a balance between meeting Australia’s current and future energy needs whilst transitioning in a responsible manner.
The energy transition will be powered by bringing flexible capacity into the market and supporting increased investments in renewable energy, allowing AGL Energy to prioritise customer supply while they make progress towards net zero.
Neoen is a leading French independent producer of renewable energy and is working towards a long-term vision to produce renewable, competitively-priced energy and sustainability on a large scale.
Neoen Australia’s Managing Director, Louis de Sambucy, said Neoen is delighted to be partnering with AGL to deliver the innovative bespoke solution.
“With the Capital Battery currently under construction, we will soon be operating grid-scale batteries in three of the five states of the National Electricity Market and have multiple projects in development across Australia,” Mr de Sambucy said.
The offtake agreement will be integral to Neoen’s development of the Capital Battery in Canberra and is a key component in AGL’s strategy to deliver the energy supply mix of the future.
It will result in two industry leading companies – AGL Australia, a leading multi-service energy retailer and Accel Energy, Australia’s largest electricity generator – which will house AGL’s thermal sites and future energy hubs.
Over the past 20 years, AGL has invested $4.8 billion in renewable and firming generation and has added more than 2,350MW of new generation capacity to the grid since 2003.
Construction of Neoen’s Capital Battery commenced in December 2021 in the Australian Capital Territory and is expected to begin operating in the first half of 2023.