(AOF) – Neoen, the main independent producer of exclusively renewable energy, has won a capacity contract of 197 MW / 4 hours from the Australian Energy Market Operator (AEMO), in the context of a call for tenders initiated by the Western Australian Coordinator of Energy. These services will be provided by the first tranche of Collie Battery, with an output of 219 MW / 877 MWh, consisting of 224 Megapacks 2 XL from Tesla. Neoen has been developing this project since 2021 and obtained, in December 2022, the authorization to build 1 GW / 4 GWh of storage capacity.
This battery will be located near the town of Collie, in the southwest of Western Australia. It will be connected to the Shotts substation operated by Western Power, which is part of the Australian west coast electricity network, the South-West Interconnected System (SWIS), a network separate from that of the Australian east coast.
Following the award of the contract, Neoen launched the construction of the first tranche of Collie Battery by instructing Tesla and UGL to start work, the latter being in charge of civil engineering and auxiliary equipment.
The commissioning of this battery is scheduled for the fourth quarter of 2024. This is Neoen’s first large power project in Western Australia. It will also be his first ever 4-hour battery worldwide.
Collie Battery is part of Neoen’s strategy of strengthening its investments in storage, particularly in long-life batteries, in order to be able to offer more value-added services and allow greater penetration of renewable energies.
The so-called “NCESS” (Non-Co-optimized Essential System Services) contract signed with AEMO will run for two years, starting October 1, 2024.
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Key points
– First French independent producer of exclusively renewable energies founded in 2008;
– Turnover of €333.4 million, generated in 15 countries, including 50% in Australia, and 49% from solar, 41% from wind and 10% from storage;
– Portfolio of 13.9 GW, including 5.4 GW of assets in operation or construction;
– “Development to own” business model: integrated with a presence in the 4 phases of the life of the assets – development, financing, project management and operations: operating in countries with network parity, with contracts for the sale of long-term PPA electricity,
– Capital held at 46.51% by Impala (holding of the Veyrat family) and 1.61% by Cartusia (holding of the Barbaro family), acting in concert, ahead of the FSP (6.5%) and the BPI (4 .7%), Xavier Barbaro being Chairman and Chief Executive Officer of the 8-member Board of Directors;
– Balance sheet still tight with debt leverage, increased by new projects, standing at 7.5 but cash of €559 million.
Challenges
– 2021-2025 roadmap with objectives set twice in 2022: capacity in operation or construction of + 10 GW including 5 GW in 2023, annual investments of around €5.3 billion, hence regular fundraising funds, increase in operating income of +20% in 2022 then double digits;
– Innovation strategy: carried out in partnership with customers during pilot projects, innovative in essence, identifying cost reduction and energy storage technologies;
– “Sustainable Framework” environmental strategy: Corporate pillar for reducing the carbon footprint, Projects pillar for managing environmental issues and recycling facilities, launch of green loans;
– Strong position in the storage of lithium-ion batteries, developed in partnership with Tesla in the Australian unit of Hornsdale, in Providence in El Salvador and in Illikkâlâ in Finland;
– Rise in capacity in operation to 3,584 MW at the end of June, in solar and wind power in France.
Challenges
– Activity driven by regulations favorable to renewable energies;
– Capital gains expected from “farm-out” or partial or even total disposals of secured assets;
– Execution of solar projects, of 92.5 MW won in France and 80 MW in Ireland, and wind construction in Sweden and Finland;
– After a 36% increase in turnover and a 69% decline in net profit in the 1
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semester, 2022 target increased by an operating profit of between 380 and 460 million, i.e. a margin of 80 to 90%.