Ayala-led ACEN wins long-term RE service contract in Australia
- March 11, 2025
ACEN Corporation, the energy firm under the Ayala Group, has expanded its footprint in Australia by securing a long-term service contract for a large-scale pumped hydro energy storage project in New South Wales (NSW).
To be located in Lake Burrendong, the ACEN Phoenix Pumped Hydro Energy Storage project is a large-scale, long-duration renewable energy storage facility. It will have over 800 megawatts (MW) installed capacity and a maximum storage capacity of 15 hours. With long-duration storage, renewable energy (RE) can be stored and then deployed when demand is high.
Targeted for commercial operation in 2031, it was the first hydro pump chosen for a long-term energy service agreement (LTESA) as part of the Australian state’s Electricity Infrastructure Roadmap.
(Also read: GEA-3 attracts 7,500 MW in renewable bids, exceeds gov’t targets)
A roadmap for a greener future
The Roadmap is the NSW government’s twenty-year plan to aid the private sector in delivering at least 12 gigawatts of renewable energy generation and 2 gigawatts of long-duration storage.
“The Minns Labor government is delivering a reliable, affordable energy system that benefits communities and the economy,” Minister for Climate Change and Energy Penny Sharpe said.
“NSW is already powered by around 35% renewable energy. These projects will help ensure NSW households and businesses have access to affordable and reliable electricity as we continue [to] transform our grid,” Minister Sharpe continued.
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Reducing risks for large-scale RE projects
“ACEN Australia considers the Long Duration Storage LTESA an excellent mechanism to mitigate key risks around developing large and complex projects such as Phoenix Pumped Hydro by helping to provide greater revenue certainty,” the company said in a statement.
(Also read: How transition credits can derisk the nation’s switch to green energy)
“Large-scale pumped hydro projects will help deliver positive outcomes for electricity market consumers in terms of reliable, renewable, and affordable electricity,” ACEN Australia continued.
Currently, ACEN Australia has more than one GW capacity of large-scale RE projects in the construction and operations phases. The company also has more than 13 GW capacity of RE projects in the development pipeline.
Sources:
https://www.philstar.com/business/2025/03/05/2425888/acen-bags-long-term-service-contract-australia
https://acenrenewables.com.au/project/phoenix-pumped-hydro/
https://acenrenewables.com.au/wp-content/uploads/2024/02/ACEN_Australia_FINAL_April-2024-1.pdf
