Oil

Australia's AGL agrees 15-year battery power supply deal with Maoneng

Australia's AGL Energy Ltd has agreed a 15-year deal to buy battery power from Maoneng Group to ensure supply and pricing security during peak periods, the companies said on Wednesday.

Adds quote from Maoneng

Oct 30 (Reuters) - Australia's AGL Energy Ltd AGL.AX has agreed a 15-year deal to buy battery power from Maoneng Group to ensure supply and pricing security during peak periods, the companies said on Wednesday.

Maoneng will develop four large-scale batteries with a total capacity of 200MW/400MWh to be operational from 2023 to fulfil the deal.

AGL will be able to call on that supply, which is enough energy to power up to 30,000 homes, for a fixed price over the 15 years.

The deal comes as Australia struggles to cope with variable wind and solar power and ageing coal-fired plants that are often overloaded during the hot summer months, leading to widespread shutdowns and price spikes for consumers.

"Australia's energy market is undergoing significant changes and large-scale batteries like these will be pivotal in providing firming capacity in the shift between baseload power and renewables," AGL Chief Executive Brett Redman said in a statement.

Australia's Maoneng already operates a solar farm and park in Australia and has plans for more facilities.

"Energy storage will play a critical role in balancing both the energy market and ensuring the stability of the network for Australia's future," said Qiao Han Nan, Group Vice President of Maoneng.

Maoneng in June announced a deal with China's Chint Group to establish a joint venture company in Australia to acquire and co-develop utility-scale solar projects.

(Reporting by Rashmi Ashok in Bengaluru; editing by Jane Wardell and Richard Pullin)

((Rashmi.Ashok@thomsonreuters.com; +918067491689;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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