Neoen has signed a 10-year agreement with AGL Energy for up to 200MW/400MWh of virtual battery capacity underpinned by Stages 1 and 2 of its Western Downs Battery, both sized at 270MW/540MWh.
Neoen has provided notices to proceed to battery storage supplier Tesla and to balance of plant contractor UGL, signalling the start of construction for Stage 2 of Western Downs Battery in Queensland.
Related article: Neoen expands Western Downs Battery to 270MW/540MWh
This new project will consist of 140 Tesla Megapack 2XL units and is expected to start operations in 2026. It will connect into Powerlink’s nearby Western Downs substation and leverage existing infrastructure of Neoen’s Western Downs Green Power Hub.
The site currently includes Neoen’s 460MWp operating solar farm and the Stage 1 battery, which is currently under construction and on track to start operating in the Australian summer of 2024/25.
Under the virtual battery contract, AGL Energy will be able to hedge its customer load by virtually charging and discharging up to 200MW of the Western Downs Battery using a bespoke software developed in-house by Neoen.
With a total combined capacity of 540MW/1,080MWh, Western Downs Battery will be equipped with grid-forming capability and provide critical grid-reliability and frequency services as well as firming for renewables, supporting the modernisation of Queensland’s electricity network.
Neoen Australia CEO Jean-Christophe Cheylus said, “We are delighted to secure this second virtual battery contract with AGL and value their continued trust in our innovation.
Related article: Neoen wins contract for Collie Battery Stage 2 in WA
“We would like to thank Tesla, UGL and Powerlink for their commitment and dedication to making both stages of Western Downs Battery a reality.
“With Stage 2 taking our portfolio of assets in Queensland to over 1GW, we look forward to supporting AGL and contributing to grid-reliability in the NEM.”
