Zen Energy seals deal for new battery and solar projects in three states
Zen Energy has finalised an agreement with Taiwanese equity partner HD Renewable Energy Co (HDRE) to co-develop approximately 695 megawatts (MW) of multi-hour big batteries and 100 MW of solar projects across three Australian states. The deal, valued at $A14 million, marks a significant step forward for the renewable energy sector in Australia.
HDRE, a Taiwan-listed company with a valuation exceeding $1.1 billion, recently acquired a 9.7 per cent stake in Zen Energy for $43 million. This partnership will see the two companies collaborate on a 1.4 gigawatt (GW) solar and storage pipeline under the joint venture named ZEBRE, led by Ross Garnaut.
Flagship Solar and Battery Project
One of the key projects under the ZEBRE joint venture is the Solar River development in South Australia. This hybrid solar and battery project consists of 256MW of storage capacity, ranging from 2.5 to 8 hours, alongside 210MW of solar generation. Currently undergoing final grid connection approvals, Solar River represents a significant milestone in Australia’s transition to renewable energy.
Expansion Across Multiple States
As part of the recent investment, HDRE will acquire the development rights for four greenfield battery and hybrid solar projects in New South Wales, Victoria, and Queensland. These projects have a combined capacity of approximately 795MW, with room for further expansion. Zen Energy will retain a 30 per cent stake in these projects, with HDRE taking on 70 per cent ownership.
One of the notable projects included in this deal is the Wagga Wagga BESS in the NSW Riverina region, set to have a capacity of 105MW/420MWh. Anticipated to receive development approval in 2025, construction is scheduled to commence in 2026, contributing to the growing energy storage infrastructure in the region.
Additional projects in Victoria and Queensland, including a standalone BESS in Gippsland and a solar-storage hybrid facility near Gympie, will further enhance the renewable energy landscape in these states.
Accelerating Storage Program
Zen Energy’s collaboration with HDRE began in early 2024, driven by a shared focus on energy storage and green hydrogen projects. The companies signed a cooperation agreement in June of the same year, with Zen CEO Anthony Garnaut emphasising the importance of fast-tracking storage initiatives in Australia.
With projects like the Templers battery in South Australia and the Western Sydney pumped hydro project in the pipeline, Zen Energy is making significant strides towards expanding its renewable energy portfolio. The Templers battery, currently under construction, is expected to join the ZEBRE portfolio, while the Western Sydney pumped hydro project aims to repurpose former coal industry land for sustainable energy generation.
Overall, the partnership between Zen Energy and HDRE signifies a commitment to advancing renewable energy projects in Australia, with a focus on innovation and sustainability.
