Neoen's Energy Storage Revenue Nearly Triples in The First Quarter Of 2022

 Neoen's Energy Storage Revenue Nearly Triples in The First Quarter of 2022

French energy developer Neoen has nearly tripled its energy storage revenue in the first quarter of 2022, French energy developer Neoen said. The independent power producer (IPP) posted total revenue of 109.1 million euros ($115 million) in the first quarter of this year, and its battery storage revenue climbed to 14 million euros.

Neoen said its revenue growth was mainly driven by the 300MW/450MWh Victorian Big Battery energy storage project deployed in Australia, which started production in December 2021. As such, in the first quarter of 2022, the battery storage project will generate revenue primarily through its System Integrity Protection Scheme (SIPS) deal with the Victorian government.

The commissioning of the Victorian Big Battery battery storage project is the main reason for Neoen's nearly triple storage revenue growth in the first quarter of 2022.

The company also outlined the good market performance of the Finnish Yllikkälä battery energy storage system, which expanded its sales activities to new markets in the first quarter of 2022, while also benefiting from favourable market conditions due to European Electricity prices surged amid broader volatility in its energy markets.

Revenue from battery storage systems now accounts for 13% of Neoen's total revenue, compared with 7% in the first quarter of 2021.

Neoen CEO Xavier Barbaro said: "This performance was driven by strong revenue growth across all three of our divisions (solar, wind and energy storage), particularly due to the Victorian Big Battery, the world's largest battery storage facility. put the energy system into use."

Neoen signed an agreement with AGL Energy last month to provide virtual charging or discharging services for 70MW/140MWh battery storage systems in Australia."

In January of this year, Neoen began deploying a wind-solar-storage hybrid power project in South Australia with a battery storage system of 900MW, and started another hybrid power plant in Victoria. The project, which includes the deployment of a 20MW/34MWh battery energy storage system.