Australia’s largest battery drives income enhance for Neoen as photo voltaic shaded

The beginning of operations at Australia’s largest battery – the 300MW/450MWh – has delivered a close to three fold enhance in storage income within the first quarter of 2022 for Neoen, and contributed to report quarterly gross sales for the corporate.

The VBB started working late final yr – on schedule, regardless of a fireplace in one of many Tesla MegaPack items – and helped drive storage income to €14.0 million ($A21 million) within the first quarter of 2022, up from €5.3 million a yr earlier.

This wasn’t a report for storage income, which was set in early 2020 (€24 million) when Neoen’s Hornsdale Energy Reserve delivered windfall income as batteries have been referred to as in to maintain the grid secure after a sequence of storm and different occasions.

However this newest determine will likely be repeatable.

The VBB’s major income is from a contract with the Victorian state authorities and AEMO underneath the System Integrity Safety Scheme (SIPS), which unlocks peak capability in the principle hyperlink between NSW and Victoria throughout the summer season.

That contract is price $12.5 million a yr, or $3.1 million 1 / 4, and accounts for 250MW/125MWh of its capability throughout these occasions.

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Neoen additionally famous that the VBB earned gross sales from the availability of community companies (FCAS) – it is the biggest non hydro player in the market – and arbitrage income, though it didn’t go into particulars.

The €14 million additionally consists of revenues from its different batteries – Hornsdale and Bulgana in Australia, and in addition the brand new Yllikkälä battery in Finland, which expanded its gross sales of community companies to a number of markets within the quarter and benefited from beneficial market circumstances.

Elsewhere, Neoen reported that photo voltaic income grew 31 per cent to €49.6 million within the first quarter, in comparison with the primary quarter of 2021 because of new services in Argentina and France.

In Australia, income from its photo voltaic vegetation – together with Colleambally, Nurmukah and others, was boosted by greater market costs, which made up for much less favorable irradiation circumstances. It didn’t break down the geographic break up.

Wind income grew 23 per cent over the first-quarter 2021 degree to €45.2 million, largely as a result of an enormous soar in market costs, which boosted the income of the just lately absolutely commissioned Bulgana facility in Victoria. Its Hornsdale wind farms are totally on a set contract.

The income enhance additionally mirrored Bulgana’s progressing from largely commissioned in early 2021 to totally commissioned in 2022.

Total, Neoen reported income of €109.1 million for the primary quarter, a rise of 36 per cent over the identical interval a yr in the past. The important thing elements have been the contribution from property that have been commissioned in Argentina, Australia (together with VBB and Bulgana) and France in 2021.

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