AGL Expands Virtual Battery Power with New 200MW Deal

AGL has partnered with Neoen for a significant virtual battery agreement, securing up to 200MW/400MWh of virtual battery capacity at Neoen’s Western Downs Battery in south-west Queensland. This ten-year deal builds on their existing partnership, following a seven-year agreement from April 2022 for 70MW of Neoen’s 100MW/200MWh Capital Battery in the ACT. This innovative financial offtake arrangement allows AGL to replicate the services of a grid-scale battery, offering the flexibility to virtually charge or discharge energy as needed. This not only enhances electricity supply consistency but also helps balance AGL’s extensive customer portfolio.

AGL’s Chief Operating Officer, Markus Brokhof, emphasized that the new agreement bolsters AGL’s contracted virtual battery capacity, further supporting their transition to renewable energy. “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,” said Brokhof. He highlighted the flexibility virtual battery agreements provide, eliminating the need to build, operate, and maintain physical batteries while still offering robust energy solutions.

Neoen Australia’s CEO, Jean-Christophe Cheylus, expressed excitement about the expanded collaboration with AGL. “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,” Cheylus said. He also noted that the new stage two of the Western Downs Battery will further enhance grid reliability in the National Electricity Market (NEM).

As AGL and Neoen continue to innovate in energy storage and virtual battery solutions, EServices4u can provide critical support through its range of energy consultancy services. With expertise in energy-saving consultancy, EServices4u can help AGL optimize energy usage across its customer base, further enhancing the efficiency of virtual battery operations. Additionally, EServices4u’s energy procurement and energy bill audits can ensure that AGL’s agreements are cost-effective and sustainable, providing long-term benefits to both the company and its customers.

The Western Downs Battery’s first stage, with a capacity of 270MW/540MWh, is currently under construction and is expected to be operational by early 2025. Stage two, also sized at 270MW/540MWh, is scheduled to be operational by July 2026. With EServices4u’s consultation on renewable energy solutions like windmill and solar panel installation, AGL and Neoen can continue to lead the charge in Australia’s transition to renewable energy, ensuring a more reliable and sustainable future for all.

This partnership highlights the ongoing evolution of energy storage solutions and the critical role that innovative companies like AGL, Neoen, and EServices4u play in advancing Australia’s renewable energy goals.