Maoneng Group has signed a long-term contract with electricity generation and distribution company AGL for the development of four battery energy storage facilities in New South Wales, Australia.
Maoneng will develop four large-scale batteries under an Energy Storage Development Agreement. Each of the batteries will have a capacity of 50MW/100MWh, totalling 200MW/400MWh of dispatchable energy capacity.
Under the terms of the contract, Maoneng will construct and operate the battery facilities, and AGL will take power according to its needs under a 15-year offtake agreement. The deal involves a fixed price contract.
Energy from the batteries will be supplied to AGL in New South Wales between 2023 and 2038. The stored energy will be available to the grid during peak periods, notably when wind or solar power may not be at peak production.
Commercial-scale battery storage technology is developing fast.
“Energy storage will play a critical role in balancing both the energy market and ensuring the stability of the network for Australia’s future,” comments Maoneng Group vice-president Qiao Han Nan. “Our agreement with AGL will accelerate the country’s transition to renewable energy and help provide reliability and security for AGL customers during peak periods well into the future.”
“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,” says AGL CEO Brett Redman.
In late 2017, AGL signed a 300MW offtake agreement with Maoneng to buy solar energy from projects developed by Maoneng, including the Sunraysia Solar Farm in Balranald, New South Wales.
The Sunraysia Solar Farm has a capacity of 255MW. Maoneng also operates the 13MW Mugga Lane Solar Park, developed and built under the ACT Government’s Reverse Solar Auction.
Maoneng is an Australian-Chinese developer, owner and operator of renewable power generation assets. With a development pipeline of over 1GW of solar farms within Australia, Maoneng sells energy and large-scale generation certificates to Australian businesses and governments through a combination of medium and long-term contracts.
In June, Maoneng announced a deal with China's Chint Group to establish a joint venture company in Australia to acquire and co-develop utility-scale solar projects.
Shanghai Stock Exchange-listed Chint is a solar panel manufacturer and EPC contractor, with a track record of developing projects in Australia.
AGL already operates the Dalrymple North battery project in South Australia. This is one of two large batteries already operating in South Australia. The 100MW/129MWh Tesla big battery at Hornsdale is the world’s biggest.