ACEN bags long-term service deals
BY LENIE LECTURA – MAY 3, 2023
from Business Mirror
ACEN Australia, the platform representing ACEN Corp.’s renewable energy (RE) assets in Australia, has secured two long-term energy service agreements for its solar projects in New South Wales (NSW) government’s first RE and storage auction.
On Monday, ACEN said in a disclosure to the stock exchange that the 20-year Long Term Energy Service Agreements (LTESAs) were awarded to its 720 megawatts (MW) New England Solar project and 400 MW Stubbo Solar project. These were secured through the NSW Consumer Trustee’s inaugural tender for renewable generation and long duration storage.
New England Solar and Stubbo Solar will supply RE to 435,000 homes, helping to meet the NSW government’s emissions reduction target of 50 percent by 2030.
ACEN Australia CEO Anton Rohner said the LTESAs help encourage investment in the renewables and storage capacity necessary to accelerate the transition to clean, affordable power for Australians. “The LTESAs offer the rights to access a minimum price for generation projects over a 20-year timeframe, which protects investors like us from the risk of unexpectedly low wholesale electricity prices,” he said.
In return for the long-term commercial value provided by LTESAs, ACEN Australia has made significant financial commitments to support community initiatives, regional manufacturing, regional employment, and Indigenous participation.
“Our focus is on ensuring that we develop projects that offer the right mix of benefits and opportunities for NSW and Australia at large. We commend the Government for its commitment to deliver better value not just to NSW electricity consumers but to project proponents like ACEN as well,” said Eric Francia, CEO of ACEN.
ACEN Australia has around 1 gigawatt (GW) capacity worth $1 billion in construction, and more than 8 GW capacity in the development pipeline across Australia.
New England Solar (Stage 1) in NSW is ACEN Australia’s first operational project and is being built with the support of host landholders, First Nations people, and the Uralla community. The 720 MW project is one of Australia’s largest solar projects participating in the National Electricity Market and is the largest solar project in Australia to be financed on a fully merchant basis.
The 400 MW Stage 1 of the project was officially opened in March 2023.
Stubbo Solar commenced construction in late 2022. The 400 MW solar project is located within the Central-West Orana REZ and will connect to the existing 330 kV network between Wollar and Wellington. The project’s development approval also includes provisions for a 200-MW hour battery energy storage system.
