Tesla’s South Australian virtual power plant sold to utility AGL

Australian energy company AGL has bought South Australia’s social housing virtual power plant from Tesla, giving it access to a growing network of residential solar and battery systems.

Reported by the Australian Financial Review as a deal running into the “tens of millions of dollars” that includes 25 MW of solar and 7,000 of Tesla’s Powerwall home battery systems installed at social and community housing, delivering 37 MW of VPP sotrage. AGL is also committing to installing 400 more batteries into the network in 2025.

The company intends to integrate the VPP with its east coast VPP operating in New South Wales, Victoria, and Queensland.

AGL chief customer officer Jo Egan said AGL is focused on growing its under-management flexible load and VPP to support the energy transition.

“AGL is a leader in virtual power plant technology and now proudly have one of the largest residential-battery virtual power plants in Australia, driving us closer to our FY27 [fiscal year 2027] target of 1.6 GW of decentralized assets under orchestration,” Egan said.

“This deal follows on from our existing community support to help address cost-of-living pressures and is part of AGL’s ongoing focus on making sure all customers and communities can take part in the benefits of the energy transition.”

In June 2024, AGL invested AUD 150 million ($98.6 million) in a 20% stake in smart energy platform Kaluza – owned by UK-based electricity supplier Ovo Energy – to transform its retail operations.

Kaluza also serves as an energy management system allowing customers to manage the use of rooftop solar and grid exports and to orchestrate the charging of electric vehicles, battery energy storage systems, and other flexible devices.

AGL Community Power

The acquisition of the South Australia VPP coincides with AGL’s launch of a community power program to deliver on its commitment to source innovative ways to share the benefits of the energy transition.

The VPP acquisition announcement came a month after the launch of the federal government’s Cheaper Home Batteries Program, which requires that on-grid battery systems, including inverters, must have the technical capability to participate in a VPP to be eligible for incentives.

From pv magazine Australia.