Investment in portfolio of hybridised solar PV sites and battery energy storage system (“BESS”) sites in Australia ENRG has made strategic investments across seven solar PV sites in Australia, executed in multiple tranches:

  • Two operational sites, with BESS deployed at one site post-investment (2021/22).
  • Three solar PV sites were constructed and then hybridised with BESS once operational (2023/24).
  • Two ready-to-build solar PV sites with integrated BESS, set for completion in 2025.

These solar PV sites with BESS are within ENRG’s Investment Universe, encompassing renewable power generation and energy storage technologies, designed to accelerate the transition towards a low-carbon economy and reduce GHG emissions. The hybrid nature of this investment—solar PV combined with battery storage—addresses the key challenges of renewable energy intermittency and helps align power supply with fluctuating demand.

 

Sustainability Objective

The Australian portfolio fits directly within ENRG’s Investment Universe, which includes:

  • Renewable power generation assets such as solar energy technologies.
  • Energy storage infrastructure such as battery storage systems, which support the integration of renewable energy by providing backup power and stabilising the grid.
  • Distributed energy sources that generate power closer to where it is consumed, reducing the need for extensive grid infrastructure and improving overall energy efficiency.

 

Sustainability impact

The investment in distributed solar PV with BESS contributes to reduced air emissions in several ways:

  1. Solar PV generates low emissions, electricity-reducing GHG emissions by displacing more expensive and polluting fossil-fuel-based electricity generation at the operating margin, and reducing reliance on carbon-intensive energy production
  2. Solar PV generates electricity during daylight hours, but power demand often peaks in the evening when the sun is not shining. By integrating battery storage, excess electricity generated during the day can be stored and released when demand is higher (typically during evening peak periods), addressing the intermittency challenge and displacing more emitting conventional power sources.
  3. Batteries enable a temporal shift in electricity supply, allowing solar energy to meet peak demand that would otherwise be supplied by carbon-intensive sources like coal-fired power plants. This shift reduces the reliance on fossil fuels, particularly in coal-heavy states like Queensland and New South Wales.

 

Investment stewardship

Active management of investments is key to ensuring the operational efficiency and maximising the emissions reduction potential of the portfolio. The following strategies are implemented through Victory Hill’s ongoing discussion and monitoring of contractual arrangements with the asset operators:

 

Power Generation and Export Tracking:

  • Each solar PV site is equipped with monitoring systems that track power generation, battery storage levels, and the amount of electricity exported to the grid. This real-time data allows operators to ensure that solar energy is stored when generation exceeds local demand and released during periods of high demand.
  • By aligning electricity export with peak demand periods, the portfolio maximises the displacement of coal-based generation, thereby optimising emission reduction.

 

Optimising Battery Usage:

  • Batteries are strategically charged during low-demand periods (midday when solar generation is high) and discharged during high-demand periods (evenings and early mornings). This maximises the economic and environmental benefits by reducing the reliance on fossil fuel generation at peak times.
  • Proper management of the battery systems extends their lifespan and ensures they contribute effectively to both grid stability and emissions reduction.

 

Environmental management:

  • Operations and maintenance activities, which include routine equipment testing, predictive maintenance, vegetation control and landscaping, firebreak installation and maintenance, panel cleaning, flood management, weather monitoring, thermal management, operational and emergency response and preparedness planning, all contribute to protecting the portfolio and ensuring high availability and performance of the assets and therefore optimal renewable generation by the assets and emission reduction.

 

Key Performance Indicators:

  • The MWh of renewable energy generated by the solar PV projects and exported to the grid displaces electricity generation from more pollutive sources. The emissions avoided by this displacement can be calculated at the operating margin, which reflects the emissions reduction achieved by replacing the marginal generation source—often coal—with cleaner solar and stored energy. The avoided emissions are quantified based on the amount of electricity exported to the grid and the carbon intensity of the coal-fired power plants that would otherwise be generating power at those times (PCAF Standard)
  • By supplying clean, renewable energy combined with battery storage, the portfolio contributes to grid stability and increases the penetration of renewable energy in Australia’s energy mix. This investment supports Australia’s broader goals of reducing reliance on coal and lowering national GHG emissions.