AGL expands its development pipeline with the acquisition of 8.1 GW clean energy capacity
This brings to its kitty 6.1 GW of BESS and 1.8 GW solar energy projects of Firm Power and Terrain Solar, respectively
The AUD 250 million transaction has projects spread across various Australian states
Australian electricity generator AGL Energy Limited has expanded its clean energy development pipeline by 8.1 GW with a binding agreement to acquire solar projects developer Terrain Solar, and its sister company Firm Power which is a battery energy storage systems (BESS) developer. This transaction adds to its existing development pipeline of 6.2 GW.
This 100% acquisition of both these companies brings to its portfolio 1.8 GW of solar projects in New South Wales (NSW), Queensland, Western Australia, and South Australia. Grid-scale BESS projects acquired represent a combined 6.1 GW capacity with 21 projects in development. A 250 onshore wind project is also part of the deal in NSW.
These projects comprise several mid-sized BESS projects ranging between 200 MW and 500 MW, and 2 to 8 hours storage duration. Both Terrain Solar and Firm Power have also developed and sold over 10 projects together representing around 1.3 GW capacity now operational.
AGL plans to fund this acquisition worth approximately AUD 250 million from cash on its balance sheet. The company targets to add 12 GW of new renewable energy generation and firming capacity by the end of 2035 which is when it targets to exit coal power generation.
“We believe this high-quality development pipeline presents strong optionality for AGL, focusing on firming capacity which will be required to firm new renewable generation for our customer base and portfolio as thermal baseload generation exits the NEM,” said AGL Managing Director and CEO Damien Nicks.
Earlier this year, AGL announced a partnership with solar technology company SunDrive for the development of solar PV manufacturing at its Hunter Energy Club, and also with Elecsome for solar panel recycling (see AGL Energy & Elecsome Sign Solar Recycling Partnership).
Referring to the SunDrive deal, Nicks added, “If established, the Sundrive advanced manufacturing facility is expected to be the first of its kind in Australia, creating new jobs and careers opportunities in the renewables industry in the New South Wales Upper Hunter region.”
Recently, SunDrive reportedly announced job cuts while reshuffling its leadership team to focus on solar innovation (see Asia Pacific PV News Snippets: Green Lane Status For 150 MW Solar Plant In Philippines & More).
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