Australian utility aquires CSP-storage project from Photon Energy

Chasing its ambition of adding 12 GW of renewables and firming capacity by 2035, the Australian Gas Light Company (AGL) Energy has acquired the Yadnarie solar and long-duration energy storage project from Netherlands-headquartered clean energy developer Photon Energy.

Located at Cleve, South Australia (SA), 570 km northwest of Adelaide, Yadnarie uses Melbourne-headquartered clean energy generation developer RayGen Resources’ technology, involving “PV Ultra” to concentrate sunlight onto Australian-made solar modules.

Heat captured from the concentrated solar power (CSP) modules is stored in water reservoirs for on-demand electricity dispatch via organic rankine cycle (ORC) turbines.

RayGen CEO Richard Payne said Yadnarie is a groundbreaking project and will be the first utility-scale deployment of its technology.

“We are thrilled to see our long-term strategic partner AGL investing in the project. Their extensive energy market operations and deep appreciation of our technology’s unique capabilities mean they are ideally placed to steward the project through the next phase,” Payne said.

“In transitioning grids around the world there is increasing demand for our technology, which uniquely combines high efficiency solar, long duration storage, and grid stabilizing services such as real inertia.”

RayGen says Yadnarie is expected to be deployed in stages, beginning with one block of 50 MW solar, 30 MW grid-connection, and eight hours’ storage, to be commissioned in Q2, 2027. A final stage, comprising an additional two blocks of 100 MW solar, 60 MW grid connection, and up to at least eight hours’ storage, will be commissioned by 2030.

AGL Power Development General Manager Travis Hughes said AGL has long been an early supporter and adopter of innovative energy solutions like RayGen’s.

“This development has the potential to be a reliable and affordable solution to the challenges of long-duration energy storage as Australia transitions to a renewable energy system,” Hughes said.

The project provides AGL a development option over the two stages that is reported to include a payment of AUD 1.9 million ($1.2 million) in 2025, AUD 3.9 million in 2026, and AUD 1 million after commissioning, with additional payments to follow if AGL elects to expand the project.

AGL is an investor in RayGen and has an offtake agreement for production at RayGen’s 4 MW solar and 2.8 MW/50 MWh storage Carwarp Power Plant in Victoria.

Development approval

Photon Energy, which holds a 5.47% stake in RayGen, announced it has also received development approval for Yadnarie from the SA Department for Energy and Mining.

Photon Energy Group CEO Georg Hotar said the sale to AGL marks a significant milestone for the bankability of RayGen’s technology, which it is also deploying at a power plant in South Africa.

“Obtaining development approval for our Yadnarie project validates Photon Energy’s ability to originate and develop large-scale, innovative energy infrastructure,” Hotar said.

“The Yadnarie project showcases the future of hybridized solar and storage and we are proud to have worked with RayGen to bring it to this point.”