British-owned energy company Pacific Green has entered into long-term “tolling” power purchase agreements with Zen Energy for three battery energy storage system (BESS) projects in Australia. The deal covers a total of 1.5 GWh of energy storage capacity to be built in Victoria, New South Wales (NSW), and Queensland.
Pacific Green said the agreement provides a secure revenue pathway, significantly accelerating the route to market for its 7 GWh Australian development portfolio. Tolling agreements, where an operator like Zen pays for the right to charge and discharge the battery, are becoming a more common strategy developers can employ to de-risk projects and secure financing.
“Following our initial offtake agreement of 500 MWh for Limestone Coast North in South Australia, we are delighted to enter into a strategic framework for a further 1.5 GWh,” Pacific Green Group Chief Executive Officer Scott Poulter said.
“This framework agreement helps Pacific Green underwrite a significant part of our portfolio of developments in Victoria, NSW and Queensland, and enables Pacific Green to industrialise its project development processes.”
Zen Chief Executive Officer Anthony Garnaut said agreement will help the Adelaide-based retailer manage market volatility and service its growing commercial and industrial customer base.
“Zen and Pacific Green share a strategy that has storage at its heart,” he said. “This next stage of Zen’s deepening partnership with Pacific Green enables us to support our growing book of sustainability-driven commercial and industrial customers, as well as smooth the volatility inherent in the energy transition, as we meet the 24/7 requirements of our customers.”
The new agreement builds on an existing relationship between the two companies. Zen holds an offtake contract for the Pacific Green-developed Limestone Coast North Battery Energy Park in South Australia. Pacific Green sold that 250 MW / 500 MWh project to Intera Renewables, managed by Palisade Investment Partners, in March 2025 after bringing it to a de-risked stage.
Pacific Green retains the rights for the planned Limestone Coast West project that is to deliver a 250 MW / 1,000 MWh battery at the same location.
Other projects in the company’s development pipeline include the 1,000 MW / 2,500 MWh Portland Energy Park in Victoria and it has also acquired land rights in Wagga Wagga for its first NSW project.
In November 2024, Pacific Green announced the acquisition of land rights in Wagga Wagga, where the company will develop its first NSW project.
The projects form part of the UK company’s broader ambition to deploy more than 12 GWh of battery energy storage capacity globally with Australia a key focus.
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