AGL and Neoen sign virtual battery agreement

Construction site at Neoen's Capital Battery (western australia)
Construction at Neoen's Capital Battery (Image: Neoen)

AGL Energy and specialist independent power producer Neoen have signed a seven-year agreement to enable AGL to virtually charge and discharge up to 70MW of Neoen’s 100MW/200MWh Capital Battery.  

This financial offtake agreement will allow AGL to mirror the services of a grid-scale battery, providing the ability to virtually charge or discharge the battery at any time, supporting consistency of electricity supply into the grid, and balance its customer portfolio.

Related article: AGL and ARENA lock in Broken Hill battery

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.

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 our 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,” Brokhof said.

“Our aim is to strike a balance between meeting Australia’s current and future energy needs while transitioning in a responsible way.

“AGL’s energy transition will be powered by innovations like this, bringing flexible capacity into the market and supporting increased investments in renewable energy, allowing us to prioritise customer supply while we 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, sustainability on a large scale. 

Neoen Australia managing director Louis de Sambucy said Neoen was delighted to be partnering with AGL to deliver this innovative bespoke solution. 

“The virtual battery is an ideal firming tool that will become a standard Neoen product and a key element in the success of our growing offer to our customers,” de Sambucy said.

Related article: Construction begins on Neoen’s 100MW Capital Battery

“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.”

The offtake agreement is 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.

Previous articleAustralia drops to 52nd place in Green Future Index
Next articleAustralia’s eastern states face blackout risk from 2025