AGL has strengthened its position in the renewable energy sector through a $250 million acquisition of Firm Power and Terrain Solar.
The deal, announced on August 14, 2024, will add a significant development pipeline of storage, solar and wind projects to AGL’s existing portfolio.
The acquisition gives AGL ownership of 100 per cent of the shares and units in Firm Power, a Battery Energy Storage System (BESS) developer, and Terrain Solar, a solar project developer.
Combined, the two companies have a development pipeline totalling an impressive 8.1 gigawatts (GW).
The acquired pipeline comprises 6.1GW of grid-scale BESS projects across New South Wales, Queensland, Victoria, Western Australia, and South Australia, as well as 1.8GW of solar projects spread across several states.
Additionally, the deal includes a 250 megawatt (MW) onshore wind project in New South Wales.
Damien Nicks, AGL’s Managing Director and CEO, emphasised the strategic importance of the acquisition.
“Today’s announcement demonstrates our commitment to grow and accelerate our development pipeline, which is already 6.2GW, so that AGL is best placed to take advantage of market conditions and prioritise developments that generate the best longterm value and be a leader in the energy transition,” he said.
“The Group’s development pipeline includes several mid-sized BESS projects, ranging between 200 and 500MW and two-to-eight-hours storage duration.”
“We believe this high-quality development pipeline presents strong optionality for AGL, focusing on firming capacity which will be required to firm new renewable generation for our customer base and portfolio as thermal baseload generation exits the NEM.”
The $250 million acquisition is expected to be funded from AGL’s existing cash reserves and is subject to customary conditions precedent, with completion anticipated later in 2024.
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