VH Global Sustainable Energy Opportunities has agreed to acquire and build two fully-permitted solar PV sites with co-located battery energy storage systems in New South Wales, Australia for a total consideration of £16.9m.
This investment is part of the Australian solar PV and storage investment programme that was announced on 2 August 2021. With this investment the aggregate commitment to the programme has increased from the initial commitment of £50m to £58.5m, reflecting the progressive increase in cost of battery storage element.
Phase I of the Australian Energy Transition Programme consisted of the acquisition of two operating solar PV sites in South Australia and Queensland with a combined peak capacity of 17MW (connected capacity of 12MW). Phase II involved the construction of co-located batteries to the South Australian asset, which was successfully completed in July 2023. The company subsequently acquired and constructed three new solar PV sites of 4.95MW, located in New South Wales, which was completed in Q1 2024. Installation works for the co-located batteries to all three sites has commenced and the sites are expected to be operational in Q4 2024.
Today’s announcement adds two 4.95MW solar PV sites to the programme, with co-located 2-hour batteries on each site, bringing the total capacity of the Australian Energy Transition Programme to 37MW/60MWh, across seven assets. The construction of these two hybrid sites is expected to begin in Q2 2024, with completion expected in early 2025.
As with the South Australian hybrid project, which successfully captured more attractive power prices in the intraday market following the addition of the two-hour batteries, co-locating solar PV and batteries provides the system with additional renewable energy. It also supports grid stability with the storage solution, allowing the assets to better serve the needs of the Australian power market in its energy transition. Notably, the company expects to gain access to additional energy arbitrage as well as frequency stability services revenue streams from the co-located batteries.
Once fully operational, the portfolio is expected to combine merchant sales, frequency stability services revenues, long-term offtake contracts and sales of large-scale generation (green) certificates.
Birdwood Energy, the company’s existing Australian operating partner, will serve as operating partner for these two additional sites. Birdwood Energy is an Australian specialist developer and manager in the renewable sector, with more than 25 years’ experience in battery storage and renewable power generation development and operation.
GSEO : VH Global buys Australian solar sites