French utility Engie has signed a virtual power purchase agreement (PPA) with Australian company Neoen for its 300-MW Victorian Big Battery. The agreement highlights the growing role of virtual PPAs in energy storage.
Agreement Details
Through the deal, Engie will use software to virtually charge and discharge the Victorian Big Battery. The battery’s capacity covered by the agreement was not disclosed.
The virtual PPA will begin later this year. A second similar agreement will start in mid-2025. This structure provides Engie flexibility in integrating energy storage.
Also read: IFC Provides €500 Million Green Loan to ENGIE to Boost Renewable Energy Portfolio
Importance of the Victorian Big Battery
The Victorian Big Battery, located near Geelong, is one of Australia’s largest energy storage systems. It was commissioned in late 2021.
The facility plays a key role in stabilizing the grid. The battery is contracted with the Australian Energy Market Operator (AEMO) to provide 250 MW of peak capacity. This capacity helps regulate power flow between Victoria and New South Wales, ensuring more reliable energy distribution.
Also read: ENGIE and BASF sign 7-year Biomethane Purchase Agreement
Neoen’s Asset Sale and Brookfield Deal
Neoen is selling the Victorian Big Battery as part of a broader portfolio sale. The sale is part of Neoen’s agreement with Brookfield Asset Management.
Brookfield is acquiring a majority stake in Neoen. The deal values Neoen at €6.1 billion ($ 6.39 billion). The sale will help fund Neoen’s expansion in renewable energy.
Engie’s Role in Australia’s Energy Transition
For Engie, this deal is a step forward in Australia’s energy transition. The virtual PPA gives Engie access to advanced energy storage technology.
This positions Engie as a leader in Australia’s move to a cleaner, more resilient energy grid. The agreement supports the company’s green energy goals.
Virtual PPAs and the Future of Energy Storage
Virtual PPAs are becoming more important as renewable energy grows. These agreements allow utilities like Engie to access battery storage remotely.
By stabilizing the grid, virtual PPAs help ensure reliable energy supply. The Victorian Big Battery plays a central role in Australia’s clean energy future.