Lyon Group – Global Solar Agreements

Brisbane based Lyon Group have announced three integrated solar and storage projects in Australia will be launched via partnerships they have signed with two overseas companies. The renewable energy developer has partnered with US-based Fluence and Japanese energy company JERA to develop large-scale solar+battery projects. 

Lyon Group’s Global Solar Agreements

Lyon Group, JERA, Fluence CEOs to announce partnership.
Lyon Group, JERA, Fluence CEOs to announce partnership. (source: Lyon Group)

Both JERA and Fluence are already joint ventures (JERA of TEPCO Fuel & Power Inc and Chebu Electric Power Co, and Fluence borne of Siemens and AES). The latter focuses on battery storage and service provision, and JERA would invest in the projects. Lyon will remain the project developer.

“This collaboration agreement is based on a shared understanding that the world requires low emissions energy systems that are also secure, reliable and affordable. Utility-scale battery storage solutions across new and existing generation plants will be a key enabler,” said David Green, Lyon Chairman.

The partnerships will be put to work with the following three solar projects Lyon is developing in need of some answers viz a viz their industrial scale battery storage solutions:

According to Nikkei Asian Review, the three solar power pants will generate 550MW when online at the end of next year. JERA are going to contribute over 10 billion yen (~$122 million AUD) to the projects, which will include a 100MW lithium-ion battery storage system at the Riverlands solar farm in South Australia, equal largest of its kind on the planet (the other 100MW battery isn’t far away – the Tesla Powerpack farm installed in South Australia last year as part of the Hornsdale Power Reserve)

We’ll keep you updated how this partnership progresses. Great news for solar energy in Australia! 

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Nowingi solar+storage to shake up the market.

In the face of rapidly rising electricity prices (where the wholesale price has doubled over the last few years since the carbon tax was axed) – there’s a desperate need for a solution Australia wide – and the brand new $660m Nowingi solar and battery storage plant, whilst being far from a panacea, is certainly a step in the right direction. Built by the Lyon Group who are also responsible for a proposed $1b solar battery farm in South Australia to be finished by the end of the year, this plant, built by private investment, looks like it will be an iconoclastic undertaking – read on to learn why.

The Nowingi Solar + Storage Project

Nowingi Solar Farm Artist Impression
Nowingi Solar Farm (Artist’s Impression – source: lyongroup.com.au)

According to Lyon partner David Green (Lyon are a private equity firm backed by Mitsubishi of Japan and the Unite States hedge fund Magnetar Capital) to the Australian Financial Review, the project is one one of three which amount to almost $2 billion in investment (AUD). These three projects will be offered to utilities, retailers and end users by using a ‘world-first’ tender model. Green took a swipe at the bumbling government and their inept policies of the last 10 years and said “These things are happening despite governments, not because of them,” Mr Green said. “The private demand for renewable energy can’t be denied.”. They’ll initially be 100% financed by equity to facilitate rapid development, but at some point they will likely be refinanced with some debt capital (Green noted that one of Australia’s ‘big four’ banks approached them voicing interest). Lyon told the AFR that “We are seeing a really significant shift in sentiment in private sector capital.”

As of next week the Lyon Group will seek expressions of interest from market participants (generators, network owners, and energy users) for contracts and other services which will be able to use the 60Mwh of storage capacity the three projects, located in Queensland, South Australia, and Victoria, will create. The 250MW Nowingi Solar Farm (Nowingi is around 50km south of Mildura) is going to use 2.3 million panels to deliver power and also charge an 80MW (160Mwh) battery – and users will be able to bid for access to storage at the facility where in other circumstances they may have to buy at a much higher rate on the spot market. That is to say they’ll bid before (i.e. energy price arbitragethe inevitable power shortages / heat waves / high price times – thus protecting themselves from the extremely volatile wholesale price (a very powerful proposition for businesses, network owners and utility companies alike – anyone whose business relies on using high amounts of energy).

Despite (perhaps as a result of?) Canberra’s weak and ineffectual policy, private capital is coming to solar energy in a big way – just yesterday we discussed this on a smaller scale with Complete Office Supplies’ private solar investment – and last week we had a look at Eco Energy World’s solar projects and their intent to offer energy directly on the spot market without signing a Purchase Power Agreement (PPA) with any utility groups. This plant is the natural progression of such offerings – and it’s great to see private companies stand up and offer solutions, rather than pandering.

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