VH Global constructs, commissions two systems in Australia

31st Oct 2024 10:59

(Sharecast News) - VH Global Sustainable Energy Opportunities (GSEO) announced on Thursday that the construction and commissioning of two hybrid solar and battery storage systems in New South Wales, Australia had been completed.

The London-listed firm said the projects featured solar photovoltaic facilities with DC-coupled, two-hour battery energy storage systems (BESS) of 4.95MW each.

It said the expansion raised the operational share of its portfolio to 67%, up from 61% as of mid-2024.

A third hybrid asset was expected to become operational in the fourth quarter, which would bring GSEO's Australian programme to five functioning assets, with two additional projects under construction.

Launched in August 2021, the Australian programme initially committed £50m to five assets, later expanded to £58.5m with the acquisition of two further hybrid sites.

On completion, the programme was set to deliver a total capacity of 37MW or 60MWh across seven assets located in the states of New South Wales, Queensland, and South Australia.

The board explained that the Australian programme emphasised hybridisation, integrating solar PV with BESS to enhance grid stability and storage capabilities.

GSEO anticipated additional revenue from energy arbitrage and frequency stability services through the co-located storage systems.

Birdwood Energy, an Australian specialist in renewable power and battery storage, served as GSEO's local operating partner, bringing over 25 years of experience in the sector.

"We had set expectations earlier this year that further positive news would be forthcoming on GSEO's Australian distributed solar and BESS programme before the end of 2024," said Richard Lum, co-chief investment officer at Victory Hill Capital Partners.

"We are therefore delighted to announce the operational status of the latest two hybridised assets in New South Wales.

"This reflects the dedication of both the Victory Hill team and our operating partner in Australia, Birdwood Energy, in implementing this programme on time and on budget."

Lum said the opportunity set to enable the energy transition to net zero in Australia was "significant", adding that the company believed it would be remunerative for investors.

"These assets will help us achieve our twin objectives of accessing differentiated returns for shareholders via participating in the traded energy market in Australia in a risk adjusted way, as well as facilitating the energy transition in the country.

"We firmly believe Australia will continue to offer our investors a means to gain access to interesting private market sustainable energy opportunities in the medium to longer term."

At 0959 GMT, shares in VH Global Sustainable Energy were up 0.27% at 71.59p.

Reporting by Josh White for Sharecast.com.