, Australia

AGL, Neoen enter virtual battery charging deal

AGL will charge and discharge up to 70MW of Neoen’s 100MW/200MWh Capital Battery.

AGL Energy and specialist independent power producer, Neoen, signed a seven-year agreement wherein AGL will virtually charge and discharge up to 70-megawatts of Neoen’s Capital Battery.

The construction of the Capital Battery, which has a 100MW/200 megawatt-hour capacity, started in December 2021 in the Australian Capital Territory and is expected to start operating in the first half of 2023, AGL said in a statement.

AGL COO Markus Brokhof said the partnership was part of the company’s strategy to support the delivery of reliable and flexible energy via a variety of sources, noting that Neoen is the “ideal partner” for its target.

“As we continue with our plans for an orderly and responsible energy transition, we’re conscious of the need for flexible capacity that meets the energy needs of our customers to ensure they continue to have access to affordable and reliable energy,” Mr Brokhof said. “Our aim is to strike a balance between meeting Australia’s current and future energy needs while transitioning in a responsible way.”

“AGL’s energy transition will be powered by innovations like this, bringing flexible capacity into the market and supporting increased investments in renewable energy, allowing us to prioritise customer supply while we make progress towards net zero.”

Louis de Sambucy, Neoen Australia managing director, said with the construction of the Capital Battery, the company will soon operate grid-scale batteries in three of the National Electricity Market’s five states, and will bring multiple projects in development across the country

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