Neoen has achieved a major renewable milestone in Australia.
The French renewable energy developer surpassed 1 gigawatt (GW) of renewable capacity in Queensland through new battery storage projects.
The company has announced the go-ahead for Stage 2 of the Western Downs Battery, a 270 megawatt (MW)/540 megawatt-hour (MWh) project being delivered in partnership with Tesla Energy and UGL.
This new stage, combined with the 270MW/540MWh Stage 1 is currently under construction, which takes Neoen’s total portfolio of operational and under-construction assets in Queensland beyond 1GW.
The Western Downs Battery facilities will underpin a newly signed 10-year, 200MW virtual battery agreement between Neoen and Australian energy retailer AGL.
The deal allows AGL to virtually charge and discharge the battery systems, providing firming capacity and grid support services.
AGL chief operating officer Markus Brokhof said the agreement increases AGL’s contracted virtual battery capacity, helping to support the company’s customer base and the transition to renewables.
“We are pleased to sign our second virtual battery agreement with Neoen and build on our partnership. The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” he said.
“Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”
“We are delighted to secure this second virtual battery contract with AGL and value their continued trust in our innovation. 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 1 GW, we look forward to supporting AGL and contributing to grid-reliability in the NEM,” Neoen Australia’s CEO Jean-Christophe Cheylus said.
The two-stage Western Downs project highlights Neoen’s drive to innovate and expand storage offerings for Australian customers. Stage 1 is expected to be operational in early 2025, with Stage 2 targeted for July 2026 completion.
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