EDP to accelerate solar, battery projects in Australia after government awards

SINGAPORE (Reuters) -Portuguese utilities firm EDP expects to accelerate its solar and battery storage projects in Australia after securing government awards for long-term revenue generation, the company said on Monday.

Its subsidiary EDP Renewables Australia was awarded generation revenue schemes under the government's Capacity Investment Scheme (CIS) for two projects that will add more than 1.7 gigawatts of solar and battery storage to the country's energy mix, EDP said in a statement.

EDP expects to reach financial close for the Punchs Creek project located in the Toowoomba region of Queensland in 2026 and to commission the plant in early 2029. The project comprises 480 megawatt peak (MWp) of solar and a 400 megawatt battery energy storage system (BESS).

The Merino project, near Goulburn in New South Wales, which includes 530 MWp solar power generation and a 450 MW BESS is expected to reach ready-to-build status in the second half of 2026, the company added.

Australia's CIS aims to accelerate investment in renewable energy generation and clean dispatchable capacity such as battery storage by providing a long-term revenue safety net for projects.

These agreements awarded by the government via tenders will underwrite revenues by offering support if market revenues fall below a set floor, and sharing upside if they exceed a cap.

(Reporting by Florence Tan; Editing by Jamie Freed)