Neoen’s Strong Battery Storage Earnings Surge
Renewable energy and storage developer Neoen, known for its successful wind, solar, and battery projects in Australia, has seen a significant increase in revenue and earnings from its large battery portfolio. This surge comes as Neoen prepares to transition from a publicly listed company to private ownership.
While Neoen has established numerous wind and solar projects across Australia, its most notable impact has been through landmark battery installations such as the “Tesla big battery” at Hornsdale, the Victoria Big Battery, and the Collie battery in Western Australia, set to become one of the country’s largest.
Expansion of Battery Storage Projects
Over the past year, Neoen has brought several new battery storage projects online in Australia, including the Western Downs and Collie batteries, as well as the Capital battery in the ACT. Additionally, the company is in the process of commissioning the Blyth battery in South Australia.
As a listed company, Neoen’s quarterly results have provided valuable insights into the performance of renewable and storage facilities in Australia, offering transparency in an industry where many owners are not publicly listed.
Transition to Private Ownership
Neoen is set to go private following an $11 billion acquisition offer from Brookfield. This move comes after Brookfield’s unsuccessful bid for Origin Energy, prompting a shift in focus towards Neoen.
The latest financial results reveal a substantial increase in storage revenues, driven by the successful operation of the Collie and Western Downs batteries. Storage revenues rose by 66 per cent to €95 million ($A161 million) compared to the previous year, with a particularly strong performance in the fourth quarter.
The Collie battery’s off-market agreement with AEMO to utilise rooftop solar power in Western Australia contributed significantly to the revenue boost, along with the Victoria Big Battery’s success in energy arbitrage.
Future Growth and Development
Neoen currently operates 5.8 gigawatts of wind, solar, and battery capacity, with an additional 3 GW under construction. The company aims to achieve a total capacity of 10 GW by 2025, demonstrating its commitment to advancing the energy transition.
Chairman Xavier Barbaro emphasised Neoen’s dedication to value creation and accelerating the energy transition in the regions where it operates, highlighting the company’s strong pipeline and financial position.
Brookfield, holding a majority stake in Neoen, is set to finalise the acquisition by the end of next week, with plans to implement a “squeeze-out procedure” for remaining shareholders.
As Neoen prepares for a new phase of ownership, its focus remains on driving innovation and sustainability in the renewable energy sector, building on its track record of successful projects and strategic growth initiatives.
