Neoen, AGL sign virtual battery deal for 100-MW/200-MWh Aussie project

France’s Neoen SA (EPA:NEOEN) has signed a deal with AGL Energy Ltd (ASX:AGL) that will enable the Aussie utility to virtually charge and discharge a portion of the capacity of its 100-MW/200-MWh Capital Battery project in the Australian Capital Territory (ACT).

The virtual battery agreement concerns up to 70 MW of the battery storage system’s capacity, AGL said on Thursday. The deal, which according to Neoen is the first of its kind in Australia, will be valid for seven years.

Usually, customers are granted full market control rights to the entire energy storage capacity, while in AGL’s case, the utility will hedge its customer load by virtually charging and discharging the battery "as and when it chooses," over five-minute trading intervals.

"The virtual battery is an ideal firming tool that will become a standard Neoen product and a key element in the success of our growing offer to our customers,” said Louis de Sambucy, Neoen Australia’s managing director.

To be equipped with 627 lithium-ion battery units, the Capital Battery is expected to become operational in the first half of 2023. The facility is under construction in Canberra since December 2021, with a tie-up of South Korea’s Doosan Heavy Industries & Construction Co Ltd and Doosan GridTech being in charge of its construction.

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