Zen Energy gets all-clear to connect its flagship solar and battery project to SA grid

The first and biggest project in Zen Energy’s joint venture plans with Taiwanese equity partner HD Renewable Energy (HDRE) has passed one of its toughest development tests, gaining approval for electricity grid connection in South Australia.

Taiwan-listed HDRE, valued at more than $1.1 billion, in November 2024 signed up to spend $43 million on a 9.7 per cent stake in the Ross Garnaut-backed Zen, and co-develop and manage a giga-scale solar and storage pipeline through a joint venture dubbed ZEBRE.

The two companies in March refined the plan to around 695 megawatts (MW) of multi-hour big batteries and 100 MW of solar across three Australian states, backed by $A14 million in equity from HDRE.

Solar River – a 256 MW 2.5 hour battery (650 MWh) and 210 MW solar farm proposed for near Bundey in north-east South Australia – is the JV’s flagship investment, promising between 2.5 up to 8 hours of storage capacity.

The nationally significant solar and battery project has already had a kick-along, finding success in the first funding round of the federal government’s expanded Capacity Investment Scheme (CIS).

Zen says this week’s receipt of a 534-page letter from the Australian Energy Market Operator (AEMO) is a “crucial milestone,” confirming that Solar River satisfies technical and regulatory conditions for connection to the National Electricity Market (NEM).

The hybrid project, also the biggest in the ZEBRE joint venture, will be built close to Project EnergyConnect – the new interconnector between SA and New South Wales – and the existing ElectraNet substation. The project is still awaiting EPBC and EPC contract approvals.

“Solar River will add significant stability to the electricity grid as South Australia builds toward becoming 100 per cent renewable by 2027 and a clean energy superpower through its investments in green manufacturing,” said Zen CEO Anthony Garnaut in a statement on Wednesday.

From here, Zen says the Solar River project team will continue to engage with the local community, Traditional Owners and other stakeholders, using these consultation to refine aspects of the project and guide the design of the community benefits scheme.

Alongside the Solar River project, the ZEBRE joint venture is developing another five projects across four states, including the 111 MW Templers Battery north of Adelaide, which is now in commissioning, and the 105 MW Wagga North battery in southern NSW, and the 210 MW North Yarragon battery in Victoria’s Gippsland region. 

The final two projects are both in south-east Queensland: the 200 MW Hookey Creek battery and 100 MW solar project and the 180 MW Noblevale battery.