AGL and Neoen sign second virtual battery agreement
AGL Energy and power producer, Neoen, have signed a 10-year agreement to enable AGL to virtually charge and discharge up to 200 MW / 400 MWh of Neoen’s Western Downs Battery in Queensland.
This is the second virtual battery agreement between AGL and Neoen, following the seven-year agreement announced in April 2022 relating to 70 MW of Neoen’s 100 MW / 200 MWh Capital Battery in the ACT.
This financial offtake agreement will allow AGL to mirror the services of a grid-scale battery, providing the ability to virtually charge or discharge the battery at any time, supporting consistency of electricity supply into the grid, and helping to balance AGL’s customer portfolio.
AGL Chief Operating Officer, Markus Brokhof, said the agreement increases AGL’s contracted virtual battery capacity, helping to support the company’s customer base and the transition to renewables.
“We are pleased to sign our second virtual battery agreement with Neoen and build on our partnership. The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” he said.
“Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”
Neoen Australia’s Chief Executive Officer, Jean-Christophe Cheylus said: “We are delighted to secure this second virtual battery contract with AGL and value their continued trust in our innovation. We would like to thank Tesla, UGL and Powerlink for their commitment and dedication to making both stages of Western Downs Battery a reality. With Stage 2 taking our portfolio of assets in Queensland to over 1 GW, we look forward to supporting AGL and contributing to grid-reliability in the NEM.”
The service will be backed by the 270 MW / 540 MWh Stage 1 of the Western Downs Battery currently under construction, and a new Stage 2, also sized at 270 MW / 540 MWh. Stage 1 of the battery is expected to be operational in early 2025 and Stage 2 is expected to be operational by July 2026.