NEOEN SA (EPA:NEOEN) - Neoen completes 50% expansion of Hornsdale Power Reserve

Transparency directive : regulatory news

02/09/2020 07:15

MEDIA RELEASE

Sydney & Paris, September 2, 2020

Neoen completes 50% expansion of Hornsdale Power Reserve

* Neoen's Hornsdale Power Reserve in South Australia has completed its 50MW
  expansion
* Delivered in partnership with Tesla, the South Australian Government, and the
  Australian Government through the CEFC and ARENA, the battery will continue to
  support the State's renewable energy targets and bring technological
  innovations to the grid
* According to an independent review conducted by Aurecon, the initial 100 MW
  battery has delivered over $150 million AUD in savings to South Australian
  energy consumers

Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world's leading and
fastest-growing producers of exclusively renewable energy, has completed their
50% expansion of Hornsdale Power Reserve (HPR). The 50 MW addition takes the
world's first big battery to an upgraded capacity of 150 MW.

Delivered in partnership with Tesla, the South Australian Government, and the
Australian Government through the CEFC and ARENA, the increased storage
capacity of HPR will further enhance its ability to stabilise the grid, avoid
price volatility in the market and reduce the risks of blackouts. In a world
first and in close cooperation with AEMO and ElectraNet, testing will now
commence of the battery's capacity to deliver grid-scale inertia services, an
essential component of grid stability.

The benefits that HPR has unlocked for consumers are well established, with
independent reviews indicating that the battery has already delivered more than
$150 million AUD in savings to the market in its first two years of operation.
With HPR's enhanced storage capacity and its new capabilities, the benefits to
consumers are predicted to grow further thanks to the higher penetration of
renewables that it will enable.

The construction of HPR has also delivered a significant economic boost to
South Australia. According to a report by Aurecon, the combined construction
phases of the 150 MW battery has led to 158 jobs and generated over $300
million AUD in economic value for the State, half of this within the Yorke and
Mid North region. The project's Community Benefit Fund continues to provide
opportunities for local community building initiatives and is forecast to
provide over $1 million AUD additional social and economic benefits in coming
years.

Louis de Sambucy, Neoen Australia's Managing Director said: "We are thrilled to
announce the completion of the expanded 150 MW Hornsdale Power Reserve less
than one year after its launch. This achievement was made possible through the
dedication of the project team including our ElectraNet and AEMO counterparts,
and with the ongoing support of our partners Tesla, the South Australian
Government, the Australian Government through the CEFC and ARENA. With this
expansion and the commencement of grid-scale inertia testing, Neoen continues
to lead the way in battery storage innovation and reinforces its contribution
and commitment to South Australia's 100% renewable energy target."

Dan van Holst Pellekaan, Minister for Energy and Mining said: "Our $50 million
Grid Scale Storage Fund is making power more affordable and secure for
households, including through this project, the first large demonstration in
the world of how batteries can provide system strength similar to traditional
power generation. This is a cutting edge service which will help address our
historic system security challenges and allow us to adopt more renewable
energy."

Ian Learmonth, CEFC CEO, said: "The Hornsdale Power Reserve is a great example
of the technological innovation that has developed to help us deliver cleaner,
cheaper renewable energy across a stronger, more reliable grid. As the first
project financing of a stand-alone large scale battery in the Australian
market, it also provides a model for other investors and developers as they
consider grid-related technologies, which can be delivered in a relatively
tight timeframe."

Darren Miller, ARENA CEO said: "We are excited to see the expansion of Neoen's
Hornsdale Power Reserve reaching completion and continuing to play an important
role in providing large-scale energy storage for the vast amounts of renewable
energy produced in South Australia. Of critical importance to ARENA is the
valuable information we will gain in showing that batteries are capable of
providing inertia services and fast frequency responses to the grid, paving the
way for potential regulatory changes and revenue streams to incentivise further
grid scale batteries to be built across Australia."

Alex Wonhas, AEMO's Chief System Design & Engineering Officer, said: "AEMO
congratulates Neoen on the successful completion of the expanded Hornsdale
Power Reserve. We really appreciated Neoen's collaborative approach throughout
the connection process and look forward to working with Neoen to enable the
optimal use of this world leading battery to support higher levels of renewable
integration."

Xavier Barbaro, Neoen's Chairman and Chief Executive Officer said: "Neoen's
Hornsdale Power Reserve remains a beacon of global innovation and
collaboration, and we will continue to build on this experience to deliver new
world-leading projects that integrate renewable energy and storage for the
benefit of industry and consumers. We look forward to continuing to deliver
clean, efficient and cheaper renewable energy for all Australians."

About Neoen

Neoen is one of the world's leading and fastest growing independent producers
of exclusively renewable energy. With a capacity of more than 3 GW in operation
or under construction, Neoen is a high-growth company. Neoen is notably active
in Argentina, Australia, El Salvador, Finland, France, Ireland, Jamaica,
Mexico, Mozambique, Portugal and Zambia. In particular, Neoen operates France's
most powerful solar farm (300 MWp) in Cestas, and the world's first big battery
(150 MW storage capacity) in Hornsdale, Australia. Neoen is targeting at least
5 GW capacity in operation or under construction by end of 2021. Neoen (ISIN
Code: FR0011675362, ticker: NEOEN) is listed in Compartment A of the regulated
market of Euronext Paris.

For more information: www.neoen.com

Contact
Neoen
communication@neoen.com

Press

OPRG Financial

Isabelle Laurent
+33 1 53 32 61 51
Isabelle.laurent@oprgfinancial.fr

Fabrice Baron
+33 1 53 32 61 27
Fabrice.baron@oprgfinancial.fr

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