Pacific Green Technologies has inked a 10-year tolling agreement with Australian renewable energy developer ZEN Energy across three battery energy storage systems (BESS) totalling 1.5GWh of capacity.
Little detail has been provided on the agreement, including the specific projects encompassed in this deal; however, the locations are in Victoria, New South Wales, and Queensland.
According to Pacific Green’s CEO, Scott Poulter, the deal will help the organisation underwrite a “significant” part of its development portfolio across the three Australian states.
In a tolling agreement, an offtaker or route-to-market provider pays a guaranteed fixed price to the asset owner in exchange for the right to trade and participate in markets using some or all of the battery storage capacity, as detailed by market intelligence firm Modo Energy in this video explainer.
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It marks another BESS milestone in what has been a busy year so far for Pacific Green. For instance, the US-headquartered energy storage developer agreed to sell its 250MW/500MWh Limestone Coast North Energy Park BESS in South Australia to Intera Renewables in a deal worth AU$460 million (US$293 million).
Meanwhile, ZEN Energy has rapidly been expanding its presence within the Australian renewables and energy storage sector, particularly through its joint venture with Taiwan’s HD Renewable Energy called ZEBRE.
Since its launch, ZEBRE has acquired several development projects in Australia as it eyes creating a 1.4GW renewables and energy storage portfolio. 1GW of this figure will be comprised of energy storage.
The first project the JV secured was the 210MW Solar River solar-plus-storage site in South Australia, which features a 256MW co-located BESS.
AGL Energy and Engie Australia pen virtual storage agreement
In other news, the Australian entity of utility and power firm Engie has signed a firm 100% virtual energy storage agreement, which is a first of its kind for Engie Australia.
From 2027, Engie will purchase energy via a five-year, derivatives-only agreement, enabling the group to emulate the operational flexibility of a two-hour BESS. The deal will be backed by AGL’s BESS assets located in New South Wales.
The capacity that Engie will secure from AGL has not been disclosed at the time of reporting.
Although Engie says this deal is a “first of its kind” for the Australian entity, at the end of last year, Engie Australia penned a virtual battery offtake agreement with developer Neoen for a portion of the Victorian Big Battery, which was recently sold to HMC Capital.
This virtual battery offtake agreement covers 40MW of the 300MW/450MWh Victorian Big Battery capacity.
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