Allens has played an advisory role in the negotiation of a long-term power purchase agreement (PPA) between renewable energy retailer and asset developer ZEN Energy and energy company Enel Green Power Australia.
Under the 10-year agreement, ZEN has secured 70% of the solar capacity of the Quorn Park Hybrid Facility in New South Wales. The 98 MWDC solar farm and 20MW battery energy storage system is set to be operational by early 2026 and is expected to power more than 45,000 Australian homes.
The PPA will allow ZEN to add an additional 68MW capacity to its existing generation portfolio, which is set to double in 2024 to 2TWh annually.
'It was a pleasure to once again partner with ZEN on an innovative transaction as it continues to make strides as an emerging renewable retailer,' said Partner Danielle Jones.
'PPAs and offtakes from hybrid and co-located facilities are increasingly in demand as the momentum for new investment in grid-scale batteries rapidly builds. Offtake products from hybrid facilities present unique challenges, compared to the more traditional PPA from a solar or wind facility, and we expect the products to continue to evolve and develop as the market matures.'
