Australia features prominently in Neoen’s quarterly results, attributed with driving a significant portion of the French company’s growth – especially from its storage assets.
Neoen is Australia’s biggest big battery owner, and the company is reaping major benefits for its early movement in the sector, with revenues from storage alone hitting $100 million in the first nine months of 2022, a 2.7 fold growth.
By comparison, the company’s revenue growth from solar was 20% and for wind 50%.
Overall, Neoen’s storage revenue accounted for 18% of its consolidated revenue in the first nine months of 2022, versus 10% in the first nine months of 2021.
Rystad Energy
“This hefty increase was largely driven by the contribution from the Victorian Big Battery, which entered operation in December 2021,” Neoen said in its results. “In the first quarter, it earned revenue under its capacity reserve contract with the Australian regulator, which provides for the unlock of additional peak capacity on the existing Victoria to New South Wales Interconnector (VNI) during Australian summers.
“It also generated sales from network services (FCAS) and arbitrage revenue amid highly volatile market conditions, especially during the second and third quarters. The storage segment was also underpinned by the promising performance of the Hornsdale Power Reserve in Australia,” the company added.
Neoen noted its merchant energy sales accounted for 33% of consolidated revenue to September, versus 24% in the first nine months of 2021. “This percentage notably reflects the Victorian Big Battery’s contribution.”
In October, Neoen completed financing for its 100 MW / 200 MWh Capital Battery in Canberra, declaring the project is track to be operational in the first half of 2023. In September, it also lodged an application to build a 1000 MW /4000 MWh big battery in Western Australia.
The company has long said it plans to have a big battery in all five of the National Electricity Market states – and seems to be throwing WA in just for good measure.
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So Neonen makes $100 mil profit in the first 9 months.
The worst kind of profit as the money goes straight offshore to another country. No wonder electricity costs are rising.