PVTIME – Australian energy giant AGL Energy has recently entered into a binding agreement to acquire 100% of the shares and units of Firm Power and Terrain Solar for an estimated value of A$250 million.
Firm Power, a leading provider of energy storage solutions, and Terrain Solar, a solar PV project developer, have collaborated on the development of several large-scale integrated solar and energy storage projects. Firm Power is currently actively developing 21 grid-scale battery storage projects across Australia, including 2.3GW of installed capacity in New South Wales, 2.7GW in Queensland, 500MW in Western Australia and 300MW each in Victoria and South Australia, totalling up to 6.1GW. Terrain Solar is developing six solar power projects with a cumulative installed capacity of 1.8GW in Australia, including 1.1GW in Queensland, 500MW in New South Wales, 100MW in Western Australia and less than 100MW in South Australia.
The acquisition includes the above energy storage and solar projects as well as a 250MW onshore wind project in New South Wales. The acquisition will be completed for approximately A$250 million ($165.5 million) and will be funded by cash from AGL Energy’s balance sheet. The transaction is expected to be formally completed in 2024.
This high quality development pipeline is expected to provide strong optionality for AGL based on its customer base and portfolio as the Australian National Electricity Market transitions from thermal baseload generation to renewable generation.
