ZEN Energy, HDRE joint venture targets 1.4 GW of solar and storage

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South Australia-headquartered renewable energy gen-tailer Zen Energy has teamed with $1.3 billion (USD 800 million) Taipei-listed developer HD Renewable Energy (HDRE) to launch a green energy investment and asset management platform focused on solar PV and energy storage.

In a statement, Zen said the new platform – dubbed ZEBRE – will focus on developing 400 MW of solar generation as well as 1 GW of energy storage capacity across projects in four states. The collaboration will also look at developing energy storage assets in Taiwan and potentially other countries such as Japan.

The Solar River PV and battery energy storage project being developed by Zen near Robertstown, about 120 kilometres north of Adelaide, has been identified as the platform’s first investment.

The project, that was successful in the first funding round of the federal government’s Capacity Investment Scheme, is to deliver a 210 MW solar farm and a 256 MW battery energy storage system with at least three hours capacity. The facility will connect to the national grid via the new Bundey substation constructed as part of the EnergyConnect transmission infrastructure project.

Zen said that as part of the creation of ZEBRE, it has also entered into a tolling agreement for Solar River to ensure the project moves quickly to financial close and construction which is expected to commence in 2026.

While ZEBRE’s initial target is 1.4 GW of solar and energy storage assets, Zen Chief Executive Officer Anthony Garnaut said the platform includes scope to expand quickly.

Current forecasts by the Australian Energy Market Operator (AEMO) show Australia will need at least 22 GW of storage by 2030 – a more than 700% increase in capacity in the next six years.

“Long-duration battery storage, as well as the significant benefits of deep storage that pumped hydro provides, is the critical ingredient to ensuring a reliable, firmed supply of power as Australia transitions away from fossil fuels,” Garnaut said.

“Securing Australia’s place at the head of the rapid worldwide shift to clean energy and realising the economic opportunities of becoming a renewable energy superpower depend on having global partnerships.”

The launch of the ZEBRE platform, to be 70% owned by HDRE, comes after Zen and HDRE signed off on a $43 million equity transaction late last year.

That partnership is focused on the development of battery energy storage and green hydrogen projects in Australia, Taiwan and other countries.

HDRE said it plans to leverage its resources and Zen’s expertise in the Australian electricity market to advance its market presence here and expand into new regions as part of its broader strategy to become a global leader in smart energy.

The company said it is targeting the development of 600 MW of solar generation and 1.5 GW of energy storage capacity in Australia. It is also planning to deliver 400 MW of PV and 2.6 GW of energy storage in Japan and 1 GW of solar capacity in the Philippines.

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