AGL aquires long-duration electro-thermal project from Photon Energy

AGL Energy has acquired the 150 MW solar, 90 MW thermal, and 720 MWh of storage Yadnarie Project from Dutch developer Photon Energy, and follows the project’s development approval received in June.

July 10, 2025 Ev Foley

Image: RayGen Resources

Chasing its ambition of adding 12 GW of new renewables and firming by 2035, Australian Gas Light Company (AGL) Energy has acquired the Yadnarie solar and long duration energy storage project from Netherlands-headquartered clean energy developer Photon Energy.

Located at Cleve, South Australia (SA), 570 kilometres northwest of Adelaide, Yadnarie uses Melbourne-headquartered clean energy generation developer RayGen Resources’ technology, involving PV Ultra to concentrate sunlight onto Australian-made, solar modules.

Heat captured from the modules is stored in water reservoirs for on-demand electricity dispatch via Organic Rankine Cycle (ORC) turbines.

AGL’s acquisition of Yadnarie includes the option to expand the project after initial stages are commissioned by 2030.
*Image: RayGen Resources*

RayGen Chief Executive Officer Richard Payne said Yadnarie is a groundbreaking project and will be the first utility-scale deployment of its technology.

“We are thrilled to see our long-term strategic partner AGL investing in the project. Their extensive energy market operations and deep appreciation of our technology’s unique capabilities mean they are ideally placed to steward the project through the next phase,” Payne said.

“In transitioning grids around the world there is increasing demand for our technology, which uniquely combines high efficiency solar, long duration storage and grid stabilising services such as real inertia.”

RayGen says Yadnarie is expected to be deployed in stages beginning with one block of 50 MW solar, 30 MW grid-connection and 8 hours storage to be commissioned in Q2 2027, and a final stage comprising an additional two blocks of 100 MW solar, 60 MW grid connection and up to at least 8 hours storage, to be commissioned by 2030.

AGL Power Development General Manager Travis Hughes said AGL has long been an early supporter and adopter of innovative energy solutions like RayGen’s.

“This development has the potential to be a reliable and affordable solution to the challenges of long duration energy storage as Australia transitions to a renewable energy system,” Hughes said.

A render of the proposed Yadnarie Project development.
*Image: RayGen Resources*

The project provides AGL a development option over the two stages, which is reported to include a payment of $1.9 million (USD 1.2 million) in 2025, $3.9 million in 2026, and $1 million after commissioning, with additional payments to follow if AGL elects to expand the project.

AGL is an investor in RayGen and has an offtake agreement for production at RayGen’s 4 MW solar and 2.8 MW / 50 MWh storage Carwarp Power Plant in Victoria.

Development approval

Photo Energy, which holds a 5.47% stake in RayGen, announced it has also received development approval for Yadnarie from the South Australian Department for Energy and Mining.

Photon Energy Group Chief Executive Officer Georg Hotar said the sale to AGL marks a significant milestone for the bankability of RayGen’s technology, which it is also deploying at a power plant in South Africa.

“Obtaining development approval for our Yadnarie project validates Photon Energy’s ability to originate and develop large-scale, innovative energy infrastructure,” Hotar said.

“The Yadnarie project showcases the future of hybridised solar and storage, and we are proud to have worked with RayGen to bring it to this point.”

Using RayGen’s technology already operational at the Carwarp Power Plant in Victoria (pictured), the Yadnarie Project will have at least 720 MWh of storage, equivalent to eight hours of dispatchable electricity.
*Image: RayGen Resources*

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