ENGIE Australia and AGL Energy have signed an innovative firm 100% virtual storage agreement—the first for ENGIE in Australia.
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ENGIE ANZ supply and energy management head of origination Tiburce Blanchy said, “This is a landmark agreement and a milestone for our business and the Australian energy landscape.
“Starting in 2027, this purchase of a five-year, derivatives-only agreement with AGL will allow ENGIE to emulate the operational flexibility of a two-hour battery.
“We’re doing this to unlock new ways of delivering firming capacity to our customers, entirely independent of any physical assets.
“This advanced structure strengthens our suite of Energy Management Services, offering more flexible solutions to market counterparts and large energy users in Australia.
“The agreement reflects our ongoing commitment to supporting the energy transition through smarter, more flexible commercial models.”
AGL general manager trading and origination Simon Sarafian said, “This innovative approach enables financial trading to mimic energy stored in a battery.
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“Backed by AGL’s portfolio in NSW and our leading trading capability, such agreements can accelerate AGL’s battery energy storage system (BESS) pipeline, including projects from our 2024 acquisition of Firm Power.”
