AMPYR Australia has inked a 15-year battery storage agreement with global energy trading company InCommodities for the Bulabul Battery Energy Storage System (BESS) in Wellington, New South Wales.
The partnership is worth in excess of $300 million for up to 15 years across battery projects, and signals a pivotal shift toward a more diverse and competitive energy landscape.
Historically, few financial intermediaries in the National Electricity Market (NEM) have engaged in long-term offtake agreements. Often the only option for long-term agreements were large incumbent retailers, who dominated the market and held strong market power.
Related article: AMPYR acquires battery project from Green Gold Energy
The rise of battery storage, supported by government initiatives such as the NSW Electricity Infrastructure Roadmap and the Capacity Investment Scheme (CIS), is now breaking that concentration of market power.
Developers like AMPYR are leading this transition, creating opportunities for new, strong entrants such as InCommodities—a Danish financial intermediary with a strong global trading track record and high credit quality.
Located in Central West NSW, the Bulbul BESS is designed to charge from excess solar and discharge sufficient energy to power up to 300,000 homes for two hours during peak demand periods. The 300MW/600MWh system will provide essential firming capacity, helping to stabilise the grid as renewable penetration continues to grow.
The agreement involves an innovative Capacity Swap Agreement of up to 120MW. It will leverage InCommodities’ global trading, spot market and energy-tech experience along with Ampyr’s asset management expertise.
InCommodities head of power trading for Australia and New Zealand Andrew Koscharsky said, “We’ve entered the Australian market with a vision of accelerating the domestic transition towards renewables.
Related article: Battery to be added to Australia’s largest wind farm
“As a non-traditional global player, we are making long-term trading commitments, significantly beyond the two or three-year decisions typically made by existing traders, bringing a new identity to the market. This approach increases wholesale market competition to the benefit of the Australian consumer through long-term partnerships with developers like AMPYR Australia.
AMPYR Australia CEO Alex Wonhas said, “InCommodities’ entry at scale into the Australian battery and storage market is a welcome and significant development. It will enhance competition and drive better, more innovative outcomes for consumers.
“This shift is not only necessary, but it also reflects a fundamental shift in the structure of the energy market, driven by agile, market-shaping participants like InCommodities.”
