Neoen finalizes the financial closing of its 100MW / 200MWh Capital Battery in the Australian Capital Territory.
A financial partnership
Neon is realizing this project in collaboration with the technology provider Doosan. Construction of the site would begin in December 2021. The company’s Australian subsidiary, Neoen, announced that the project will be operational in the first half of 2023.
The French company owns Capital Battery. The Clean Energy Finance Corporation (CEFC) provides the debt financing. In addition, the infrastructure fund manager is Infradebt.
Once operational, the energy producer will launch a community co-investment program. Capital Region residents will have the opportunity to become financial stakeholders in the project. In addition, as the owner of Australia’s largest power generation portfolio, AGL supports this investment.
An innovative solution
In April 2022, the French company was awarded a 70MW virtual battery contract for 7 years with AGL Energy. The virtual battery is an innovative solution designed by the French giant. It allows a large user of electricity to mimic a grid-scale battery without having to own one.
This flexible solution allows AGL Energy to cover the load of its customers. The company has the ability to virtually charge and discharge a 70 MW battery as it sees fit. In parallel, Neoen will be able to use Capital Battery to provide the network with valuable support services.
Finally, in addition to Capital Battery, the French company owns and operates other sites in South Australia. Its battery storage portfolio in Australia totals 576MW in operation or under construction. It thus becomes the first owner and operator of large batteries in the country.
A major presence in Australia
Neoen will build the Capital Battery as part of its winning bid in the ACT renewable energy auction in 2020. The company wins a 100 MW power purchase agreement for the Goyder South Stage 1 wind farm in South Australia. The company will be the long-term owner and operator of the battery.
In addition to Capital Battery, Neoen also operates the 300 MW / 450 MWh Victorian Big Battery near Geelong. The company also has the 150 MW / 193.5 MWh Hornsdale Power Reserve in South Australia. Neoen’s battery storage portfolio in Australia totals 576MW in operation or under construction.
Neoen becomes the first owner and operator of large batteries in the country. The company’s ambition is to have a grid-scale battery operating in every state in Australia. The company says it is excited to contribute to the country’s energy transition.
