New South Wales-based Pilot Energy has signed a binding agreement with renewables group SN Energy to develop a hybrid solar and battery energy storage project at its Three Springs solar development site in Western Australia.
Pilot, which was developing a 376 MW standalone solar farm at the Three Springs site about 300 kilometres northeast of Perth, has not provided details regarding generation or storage capacity of the new project but said it has been designed to support a proposed large-scale data centre.
Pilot Managing Director Brad Lingo said the shift to a hybrid solar and battery project better aligns with emerging market demands for firmed renewable power solutions.
“This entirely new project development responds to what the market requires but it also provides Pilot flexibility for the proposed development of up to a 50 MW data centre as a behind-the-meter customer,” he said.
Under the binding heads of agreement, SN Energy will pay Pilot $10.75 million (USD 7.24 million) in upfront and milestone payments that will cover the acquisition of the Three Springs site. The funds will also cover costs associated with progressing grid connection works and lodging a new development application for the hybrid solar and battery project and proposed data centre development.
“The joint development agreement with SN Energy enables Pilot to realise a significant amount of capital while delivering a much-enhanced new hybrid project,” Lingo said.
Pilot has secured an additional $500,000 short-term unsecured loan from existing shareholders to support the development of the data centre project.
The data centre market in Australia is growing rapidly with 250 data facilities already established in the country and a further 175 predicted to be needed by 2030. Currently, data centres in Australia consume about 5% of the national electricity generation, and that share is forecast to grow to 8% by 2030. Some estimates even suggest that data centres could require up to 15% of total grid power by then.
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