AGL acquires virtual power plant from Tesla in Australia
Australian Gas Light Co. (AGL) has purchased 100% of a public housing virtual power plant (VPP) in South Australia from Tesla, with plans to integrate it with its VPP network on the east coast.
Australian Gas Light Co. (AGL) has purchased 100% of a public housing virtual power plant (VPP) in South Australia from Tesla, with plans to integrate it with its VPP network on the east coast.
Sydney-based energy AGL has bought 100% of South Australia’s social housing VPP from Tesla, giving it access to a growing network of residential solar and battery systems.
AGL said it will install 400 additional home batteries in 2025 as part of a deal reported by the Australian Financial Review to be worth tens of millions of dollars. The agreement includes 25 MW of solar and 7,000 Tesla Powerwall systems – totaling 37 MW – at social and community housing sites.
The company plans to integrate the VPP with its east coast VPP operating in New South Wales, Victoria, and Queensland.
AGL Chief Customer Officer Jo Egan said AGL Is focused on growing its flexible load under management and virtual power plant to support the energy transition.
“AGL is a leader in virtual power plant technology, and now proudly have one of the largest residential battery virtual power plant in Australia, driving us closer to our FY27 target of 1.6 GW of decentralized assets under orchestration,” said Egan. “This deal follows on from our existing community support to help address cost of living pressures and is part of AGL’s ongoing focus on making sure all customers and communities can take part in the benefits of the energy transition.”
In June 2024, AGL invested AUD 150 million ($98 million) for a 20% stake in smart energy platform Kaluza, owned by UK electricity supplier Ovo Energy, to transform its retail operations. Kaluza also serves as an energy management system allowing customers to manage the use of rooftop solar and grid exports and to orchestrate the charging of electric vehicles, battery energy storage systems and other flexible devices.
The acquisition of the South Australian VPP coincides with AGL’s launch of a community power program to deliver on its commitment to source innovative ways to share the benefits of the energy transition.
The announcements come a month after the launch of the federal government’s Cheaper Home Batteries Program, which requires that on-grid battery systems, including the inverter, must have the technical capability to participate in a VPP to be eligible.
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