Australian group Maoneng will deploy 200 MW/400 MWh of battery storage capacity that will serve utility AGL Energy Ltd (ASX:AGL) in New South Wales under a 15-year deal.
AGL said on Wednesday it has signed four derivative agreements with Maoneng, under which the latter will install four energy storage plants of 50 MW/100 MWh each. They will become operational in 2023.
The capacity will be enough to store electricity for up to 30,000 homes that will be used during peak demand periods or when renewable energy supply is low. AGL will be able to call on capacity as required from the Maoneng batteries at a fixed price in the period between 2023 and 2038.
"Australia’s energy market is undergoing significant changes and large-scale batteries like these will be pivotal in providing firming capacity in the shift between baseload power and renewables," said Brett Redman, AGL’s CEO.
This deal is not the first partnership between Maoneng and AGL. At end-2017, the Australian group and the utility signed a 15-year power purchase agreement (PPA) for up to 800,000 MWh per year from solar farms in the country. This includes generation from the 250-MW Sunraysia photovoltaic park (PV) that is currently under construction near Balranald.
Choose your newsletter by Renewables Now. Join for free!