TagEnergy and Snowy Hydro ink 15-year deal for 600 MWh battery

Virtual tolling grants Snowy Hydro battery capacity without construction or capital burden.

TagEnergy and Snowy Hydro have inked a 15-year, 105 megawatt (MW), four-hour virtual toll agreement for its 150 MW / 600 megawatt-hour battery energy storage system (BESS) at Golden Plains Wind Farm in Victoria, Australia.

“The long-term deal is the first virtual storage contract for the newly announced Golden Plains BESS that will add flexibility and reliability to Victoria’s power supply to speed the energy transition,” TagEnergy said in a statement.

The agreement comes as TagEnergy prepares to start building the BESS on site at the Southern Hemiphere’s largest onshore wind farm in early 2026, with the standalone storage facility expected to begin operating in late 2027.

“This virtual toll arrangement will enable Snowy to leverage the flexibility of our storage assets without needing to build, own or operate their own. It will provide TagEnergy with a predictable revenue stream to balance market exposure from trading remaining capacity as merchant,” said TagEnergy Managing Partner Andrew Riggs.

The deal also gives Snowy battery storage capacity without the construction and capital burden of developing, owning and operating a physical facility.

The virtual tolling agreement extends the relationship between TagEnergy and Snowy Hydro into storage, after the pair signed the first Power Purchase Agreement (PPA) for Golden Plains Wind Farm in 2023.