Engie signs new offtake deal for charging and discharging services from Victoria Big Battery

French energy giant Engie has signed a battery offtake deal with fellow French energy company Neoen, giving it “virtual” access to part of the 300 megawatt (MW), 450 MWh Victoria Big Battery near Geelong.

The VBB was the nation’s biggest battery project when it began the commissioning process back in July, 2021, although it has since been overtaken by a number of other storage projects, including Neoen’s own Collie battery in Western Australia.

The VBB facility is also about to change hands as part of the Victoria generation and storage assets that Neoen must sell to meet regulatory requirement for its own purchase by asset management giant Brookfield. The sale process for those assets, including the Bulgana energy hub, the Numurkah solar farm and other projects is ongoing.

The VBB is already backed by a lucrative 10-year contract with the Australian Energy Market Operator to have much of its capacity on standby to allow the market operator to increase the capacity of the main transmission link between Victoria and NSW at crucial peak demand times over summer.

The big battery’s new offtake agreement – which accounts for around 40 MW of its capacity – marks a first for Engie in Australia, whose retail arm supplies electricity to more than 400,000 homes and businesses across Australia.

As a generator, the company has been working to replace its shuttered Hazelwood coal plant in Victoria with a mix of renewables and storage.

In Victoria, Engie recently turned first sod at the 250 MW Goorambat East solar farm near Benalla in northern Victoria, something the company desxribed as a “full-circle moment” since its exit from coal.

The company has also built – with Eku Energy – a 150MW/ 150MWh battery at the site of the demolished Hazelwood coal plant, and has flagged it may expand that facility.

“This financial offtake agreement will enable Engie to replicate the functions of a grid-scale battery, allowing for virtual charging or discharging at any time,” said Engie’s Tiburce Blanchy in a statement on Tuesday.

“(It will allow) us to offer increased flexibility in our firming portfolio while we continue to develop other physical BESS projects.”

Blanchy says the virtual battery agreement will kick off beore the end of 2024, and will be complemented by a second similar transaction due to start mid-2025.

For Neoen Australia’s part, CEO, Jean-Christophe Cheylus, says the new contract with Engie “points once more” to how battery storage is meeting the evolving needs of customers.