Neoen has started full commercial operations at its Bulgana Green Power Hub in the state of Victoria, Australia, which includes a 20MW / 34MWh battery energy storage system (BESS) paired with a 204MW wind farm.
The France-headquartered renewables developer and independent power producer (IPP) brought its latest project in Australia to feature battery storage online just before the end of last year.
The Bulgana project has in place a 15-year Support Agreement with the government of Victoria. The agreement was put in place after Neoen’s successful bid in a Victorian Renewable Energy Auction Scheme (VREAS) and has been described by the state’s government as a ‘hybrid payment mechanism’ which ensures revenue certainty for renewable energy projects.
The mechanism is a mixture of fixed-price payment and a variable contract-for-difference (CfD) payment paid monthly based on a state-determined strike price for electricity generated. Neoen’s agreement was signed in 2017. It also has in place a corporate power purchase agreement (PPA) with agricultural group Nectar Farms.
Bulgana Green Hub’s generated electricity feeds directly into the national grid. The project represents an investment of AU$350 million (US$253.3 million) and created more than 110 jobs during construction. The site is located in Wimmera, central-western Victoria. A community fund has also been created to benefit local community groups, worth AU$120,000 per year.