ACEN Corp. said Tuesday its Australian unit secured 20-year energy service agreements for two of its solar projects at the New South Wales government’s first renewable energy and storage auction.
The company said in a statement LTESAs for ACEN Australia’s 720-MW New England Solar project and 400-MW Stubbo Solar project were secured through the NSW Consumer Trustee’s tender for renewable generation and long duration storage.
ACEN Australia chief executive Anton Rohner said the LTESAs allow for greater investment certainty for businesses like ACEN.
“The LTESAs help encourage investment in the renewables and storage capacity necessary to accelerate the transition to clean, reliable and more importantly, affordable power for Australians,” he said.
“The LTESAs offer the rights to access a minimum price for generation projects over a 20- year timeframe, which protects investors like us from the risk of unexpectedly low wholesale electricity prices,” Rohner said.
According to the NSW government, generators have the option to sell their electricity at an agreed minimum fixed price to a financial vehicle scheme.
The New England Solar and Stubbo Solar will supply renewable electricity to 435,000 homes once operational, helping to meet the NSW government’s emissions reduction target of 50 percent by 2030.
ACEN Australia made significant financial commitments to support community initiatives, regional manufacturing, regional employment, and indigenous participation in return for the long-term commercial value provided by LTESAs.
“Our focus is on ensuring that we develop projects that offer the right mix of benefits and opportunities for NSW and Australia at large. We commend the government for its commitment to deliver better value not just to NSW electricity consumers but to project proponents like ACEN as well,” ACEN chief executive Eric Francia said.
ACEN Australia has around 1,000 MW capacity worth $1 billion in construction and more than 8,000 MW capacity in the development pipeline across Australia.
Its renewable energy assets include solar, wind, battery and pumped hydro and energy storage projects across Australia.