AMPYR Australia, an independent power producer, and InCommodities, a Danish financial intermediary, have entered into a 15-year battery storage agreement for the Bulabul battery energy storage system (BESS) located in Wellington, New South Wales (NSW).
Valued at over $300m, the deal marks InCommodities’ first ten-year-plus commitment in the Australian market.
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AMPYR will serve as the developer, owner, and operator of the Bulabul BESS.
The Bulabul BESS, located in Central West NSW, is designed to charge from excess solar energy and deliver enough electricity to supply up to 300,000 homes for two hours during peak demand periods.
With a capacity of 300MW, the project will add essential firming capacity, aiding grid stability as renewable energy penetration increases, according to AMPYR’s news release.
The agreement also features a capacity swap agreement of up to 120MW, leveraging InCommodities’ global trading, spot market, and energy technology experience with AMPYR’s asset management capabilities.
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By GlobalDataAMPYR said that this long-term commitment underscores the growing role of battery storage in Australia’s energy transition.
AMPYR Australia CEO Alex Wonhas said: “InCommodities’ entry at scale into the Australian battery and storage market is a welcome and significant development. It will enhance competition and drive better, more innovative outcomes for consumers.
“This shift is not only necessary, but it also reflects a fundamental shift in the structure of the energy market, driven by agile, market-shaping participants like InCommodities.”
Traditionally, few financial intermediaries in Australia’s National Electricity Market are said to have participated in long-term offtake agreements.
The introduction of battery storage, aided by government initiatives such as the NSW Electricity Infrastructure Roadmap and the Capacity Investment Scheme (CIS), is now creating opportunities for new entrants and breaking this concentration of power.
InCommodities Australia and New Zealand head of power trading Andrew Koscharsky said: “We’ve entered the Australian market with a vision of accelerating the domestic transition towards renewables. As a nontraditional global player, we are making long-term trading commitments, significantly beyond the two- or three-year decisions typically made by existing traders, bringing a new identity to the market.
“This approach increases wholesale market competition to the benefit of the Australian consumer through long-term partnerships with developers like AMPYR Australia.”
