Pacific Green is expanding its Australian battery storage, signing a landmark offtake framework agreement with Re2 Capital Limited (Re2) to support the rollout of 2 gigawatt-hour (GWh) of new Battery Energy Storage System (BESS) capacity across the National Electricity Market.
The need for flexible, dispatchable storage continues to grow. This is anticipated to be uplifted by policies such as Victoria’s energy-storage targets, New South Wales firming tenders, and Queensland’s SuperGrid blueprint. Pacific Green’s framework agreement with Re2 is expected to set a new benchmark for commercial structuring in Australia’s BESS sector.
The agreement covers seven-to-ten-year capacity revenue swap arrangements for four BESS projects located in South Australia, Victoria, New South Wales and Queensland. It represents an industry-first commercial model for long-term revenue underwriting in Australia’s fast-growing storage market and advancing Pacific Green’s 7 GWh national development pipeline.
The partnership strengthens Pacific Green’s route-to-market strategy by providing greater revenue certainty, unlocking investment confidence and facilitating faster deployment timelines for the company’s multi-state portfolio. As Australia accelerates renewable penetration and grapples with rising system-security challenges, large-scale storage backed by long-duration contracting frameworks is becoming increasingly critical to maintaining grid stability and ensuring firm capacity.
Scott Poulter, Group Chief Executive Officer at Pacific Green, sees the agreement with Re2 as a strategic move to cement its position as a leading BESS developer in Australia.
“Following our recent agreement with ZEN Energy for 1.5 GWh, we are delighted to now also sign this first-of-its-kind framework agreement with Re2 for 2 GWh in Australia,” Poulter said.
“Combined, these strategic framework agreements with Re2 and ZEN Energy enable Pacific Green to guarantee revenue underwriting 3.5 GWh of battery projects in Australia and signify a major milestone for Pacific Green’s development business.”
Poulter said the deal demonstrates growing investor confidence in firming infrastructure as Australia transitions away from coal and increasingly relies on variable renewable energy.
Richard Oduntan, Chief Executive Officer at Re2 Capital, sees the partnership as a way to accelerate financing pathways for essential energy infrastructure.
“This framework agreement with Pacific Green is a milestone for both companies and the wider energy market,” Oduntan said.
“Through this framework agreement, we hope to further enable the development of critical infrastructure that will strengthen the National Electricity Market in Australia and facilitate continued renewable energy penetration.”
