French independent power producer Neoen has achieved a key milestone in the development of its 200MW/400MWh Blyth grid-forming battery energy storage system (BESS) in South Australia.
The project, which will deliver energy generated by a Neoen-owned wind farm in Goyder, about 60km away, to mining and resources company BHP, has been successfully registered in the Australian Energy Market Operator (AEMO)’s Market Management System as a bidirectional unit.
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As confirmed on a LinkedIn post published by Geoff Eldridge, National Electricity Market (NEM) and energy transition observer at consultancy Global Power Energy, the BESS asset becomes the second bidirectional unit to be registered on the Market Management System.
The bidirectional unit can charge and discharge energy to support the grid and provide ancillary services, enhancing overall system flexibility.
Neoen’s project will cost in the region of AUS$337 million (US$227 million), with the Australian Renewable Energy Agency (ARENA) set to provide AUS$17 million in funding support. The organisation allocated the funding to implement an advanced inverter technology into the asset, to enable it to provide grid-balancing inertia.
By being registered, the asset will begin its testing phase as a bidirectional unit.
The wind farm at Goyder is part of Neoen’s hybrid renewable energy facility development. Called Goyder South Renewables Zone, it will eventually comprise 1200MW of wind power, 600MW of solar PV, and 900MW of battery energy storage.
Neoen subject to takeover bid from Canadian asset manager Brookfield
It is worth noting that the French independent power producer is set to be acquired by Canadian asset manager Brookfield, in a deal worth €6.1 billion (US$6.7 billion).
The closing of the deal will see Brookfield take a 53.12% majority stake in Neoen at €39.85 (US$42.6) per share from investors Impala and Fonds Stratégique de Participations, an investment vehicle owned by seven French insurance companies, amongst others.
Neoen announced negotiations with Brookfield in late May for a majority sale to the asset owner, along with its institutional partners Brookfield Renewables and Singapore-headquartered investor Temasek.
Once the acquisition has closed, Neoen said that it expects Brookfield to initiate an all-cash mandatory tender offer for all of the remaining shares and outstanding convertible bonds in the company.
