Zen Energy and Pacific Green, a British-owned energy company, have signed long-term “tolling” power purchase contracts for three battery energy storage system (BESS) projects in Australia. The agreement calls for the construction of 1.5 GWh of energy storage capacity in Victoria, New South Wales (NSW), and Queensland.
According to Pacific Green, the deal offers a stable cash stream, greatly speeding up the development portfolio’s approach to market for its 7 GWh Australian projects. An increasingly popular tactic used by developers to reduce project risk and obtain funding is tolling agreements, in which an operator such as Zen pays for the privilege of charging and discharging the battery.
“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 stated.
“This framework agreement helps Pacific Green underwrite a significant part of our portfolio of developments in Victoria, NSW, and Queensland, and it enables Pacific Green to industrialize its project development processes.”
According to Anthony Garnaut, CEO of Zen, the deal will assist the Adelaide-based retailer in managing market volatility and providing for its expanding clientele of businesses and industries.
“Zen and Pacific Green share a strategy that has storage at its heart,” he stated. “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 partnership strengthens the already strong relationship between the two businesses. Pacific Green developed the Limestone Coast North Battery Energy Park in South Australia, for which Zen has an offtake agreement. After de-risking the 250 MW/500 MWh project, Pacific Green sold it to Palisade Investment Partners-managed Intera Renewables in March 2025.
The planned Limestone Coast West project, which will produce a 250 MW/1,000 MWh battery at the same location, is still under Pacific Green’s ownership.
In addition, the company holds site rights in Wagga Wagga for its first project in New South Wales and is working on the 1,000 MW/2,500 MWh Portland Energy Park in Victoria.
Pacific Green announced in November 2024 that it had acquired the land rights in Wagga Wagga, where it would build its first project in New South Wales.
With Australia as a primary emphasis, the projects are a part of the UK company’s larger goal to install more than 12 GWh of battery storage capacity worldwide.
