Pacific Green and ZEN Energy sign 1.5 GWh BESS tolling agreement

UK-based battery developer Pacific Green has entered into an agreement with energy retailer ZEN Energy for 10-year tolling arrangements across three of its planned battery energy storage system (BESS) projects.

The deal covers a total of 1.5GWh of energy storage capacity to be built in Victoria, New South Wales, and Queensland.

The agreement provides a secure revenue pathway for a substantial part of Pacific Green’s 7 GWh Australian development portfolio, which accelerates the route to market for the Aussie project portfolio. Tolling agreements, where an operator like ZEN pays for the right to charge and discharge the battery, are becoming a more common strategy developers can employ to de-risk projects and secure financing.

Scott Poulter, Pacific Green’s Group CEO, commented: “Following our initial offtake agreement of 500MWh for Limestone Coast North in South Australia, we are delighted to enter into a strategic framework for a further 1.5GWh. This framework agreement helps Pacific Green underwrite a significant part of the our portfolio of developments in Victoria, New South Wales and Queensland, and enables Pacific Green to industrialize its project development processes.”

For ZEN, the capacity will help manage market volatility and service its customer base.

Anthony Garnaut, CEO of ZEN, stated: “ZEN and Pacific Green share a strategy that has storage at its heart. This next stage of ZEN’s deepening partnership with Pacific Green enables us to support our growing book of sustainability-driven commercial and industrial customers, as well as smooth the volatility inherent in the energy transition, as we meet the 24/7 requirements of our customers.”

As noted, the new agreement builds on an existing relationship between the two companies. ZEN Energy holds an offtake contract for the Pacific Green-developed Limestone Coast North Battery Energy Park in South Australia. Pacific Green sold that 250 MW / 500 MWh project to Intera Renewables, managed by Palisade Investment Partners, in March 2025 after bringing it to a de-risked stage.