Zen inks deal to buy output from first solar and battery hybrid project in New South Wales

Australian renewables developer and retailer Zen Energy has signed up to buy the majority of electricity produced by a newly announced solar and battery project that is set to begin construction in the central west of New South Wales. 

Enel Green Power Australia’s Quorn Park Hybrid Project will combine a 98MW solar farm with a 20MW, 40MWh battery around 10km north west of Parkes. The project reached financial close in July is expected to be operational in 2026.

Zen says the 10-year Power Purchase Agreement (PPA) with Enel adds a further 68MW capacity to its existing generation portfolio, which is on track to double in 2024 to 2 TWh a year. The transaction has been financed by a group of banks including Westpac and the Bank of China. 

As Renew Economy reported in July, Quorn Park is one of the first “hybrid” projects to be announced since new rules were introduced that allow wind or solar farms to be truly “paired” with a battery storage facility, rather than operating and dispatching as separate units. This may impose some restrictions on operations, but can save on connection and other costs.

Zen CEO Anthony Garnaut says the project appealed to the company for a number of reasons, including its location close to substantial demand loads and on flat land that has been largely cleared and used for grazing and dryland cropping.  

“Zen has … deliberately sought to align with projects like Quorn Park that will be positive for nature,” Garnaut said on Tuesday in a statement announcing the new PPA.

“Australia’s transition to clean electricity can be achieved in time to help drive down the country’s emissions  through projects like this that also ensure our unique wildlife and biodiversity is safeguarded. 

“This new partnership with EGPA represents a maturing of Zen’s eco-system of sustainability-driven renewable energy suppliers and marks a new level of relationship with our banking partners. We are now well-placed to double our generation portfolio,” Garnaut said.

For EGPA – a joint venture company co-owned by Enel Green Power and Inpex Renewable Energy Australia – Quorn Park will add to its three operational solar plants totaling 310MW of installed capacity. The company also has a 76 MW wind project in final stages of commissioning in Western Australia and a  93MW solar project in commissioning in Victoria.  

“Our recently announced Quorn Park Hybrid Project, our first project in New South Wales, is targeted to start construction in the coming months and be fully operational in the first half of 2026,” said EGPA CEO Werther Esposito.

“We look forward to working alongside ZEN Energy and our project partners and contractors to successfully deliver a project that provides significant value to the local community and our stakeholders.”