MANILA, Philippines — ACEN Australia has bagged two long-term energy service agreements (LTESA) for its solar projects in the first renewable energy and storage auction of the New South Wales (NSW) government.
ACEN, in a disclosure to the Philippine Stock Exchange, said LTESAs for its 720-megawatt (MW) New England Solar project and 400-MW Stubbo Solar project in Australia were secured through the NSW Consumer Trustee’s inaugural tender for renewable generation and long duration storage.
ACEN Australia CEO Anton Rohner said the LTESAs would allow for greater investment certainty for businesses like ACEN.
“The LTESAs help encourage investment in the renewables and storage capacity necessary to accelerate the transition to clean, reliable and more importantly, affordable power for Australians,” Rohner said.
“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.
ACEN Australia’s New England Solar and Stubbo Solar projects will supply renewable electricity to 435,000 homes once fully operational, helping meet the NSW government’s emissions reduction target of 50 percent by 2030.
The 400-MW Stage 1 of the New England Solar project was officially opened in March 2023, while Stubbo Solar commenced construction late last year.
In return for the long-term commercial value provided by LTESAs, ACEN said its wholly owned Australian subsidiary 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,” ACEN CEO Eric Francia said.
ACEN Australia has around one gigawatt (GW) capacity worth $1 billion in construction, and more than eight GW capacity in the development pipeline across Australia.
Its renewable energy assets include solar, wind, battery and pumped hydro and energy storage projects across Australia.