Neoen Australia signs virtual battery contracts with Nectr and SmartestEnergy for Western Downs Battery Stages 2 and 3

Type: Ppa · Technology: Storage · Country: Australia · Announced: 2026-06-19

Neoen Australia finalized virtual battery contracts with energy retailers Nectr and SmartestEnergy, securing offtake agreements for capacity services from the 845 MW / 2.3 GWh Western Downs Battery Stages 2 and 3 in Queensland. Nectr will receive up to two-hour and four-hour capacity services from the project, while SmartestEnergy will access up to four-hour capacity services specifically from Stage 3. The agreements leverage Neoen's proprietary software to simulate grid-scale battery operations without physical ownership, enabling 5-minute trading interval dispatch within the National Electricity Market (NEM). Western Downs Battery Stage 3, currently under construction, will install 312 Tesla Megapack 2XL units by the end of 2026, adding 1.2 GWh of storage capacity to the project. The virtual battery model allows retailers to access flexible storage solutions while Neoen monetizes its battery assets through capacity contracts. This follows Neoen's prior virtual battery agreements with AGL Energy, Shell Energy Australia, and ENGIE, reinforcing its leadership in Australia's energy storage market.

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