Genex, Tesla ink revenue sharing deal for 50-MW/100-MWh battery in Queensland
The Megapack battery system. Source: Tesla Inc
Australian renewable and storage developer Genex Power Ltd (ASX:GNX) today said it has inked what it says is the world’s first revenue deal for its 50-MW/100-MWh Bouldercombe battery system in North Queensland with Tesla Inc (NASDAQ:TSLA).
The revenue sharing arrangement will act as an off-take contract for the energy storage project and will provide Genex with a minimum amount of contracted revenue to finance the scheme. During its eight-year term, the developer will get a guaranteed fixed payment and will also have the possibility of sharing in “revenue upside” from significant pricing events in wholesale electricity and Frequency Control Ancillary Services (FCAS) markets.
The Bouldercombe will be equipped with 40 units of the Tesla Megapack lithium-ion batteries and will be run through Tesla’s in-house automated trading platform Autobidder. Tesla will operate the facility via its algorithm-based bidding system technology for eight years. Following this period, Genex intends to sign a licence agreement with Tesla to operate Autobidder on the project.
The battery is planned to be switched on at the start of 2023.
“The unique integration of Tesla’s Megapack battery technology and a revenue sharing arrangement utilising Autobidder will reduce the complexity of the project,” said Genex’s CEO James Harding.
The project is the battery investment in Queensland for the Sydney-based renewable and storage developer. It expects to achieve financial closing either in the last quarter of 2021 or the first trimester of 2022.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.