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EDP is set to accelerate its solar and battery storage projects in Australia after securing government-backed revenue schemes through the Capacity Investment Scheme. Its two projects, Punchs Creek in Queensland and Merino in New South Wales, will add more than 1.7 GW of solar and battery capacity. Punchs Creek will include 480 MWp of solar and a 400 MW battery system, while Merino will feature 530 MWp of solar and a 450 MW battery system. The CIS ensures long-term revenue support, reducing investment risks and promoting large-scale clean energy deployment across Australia.
Portuguese utilities firm EDP is moving to speed up its solar and battery storage projects in Australia following government-backed long-term revenue agreements. Its subsidiary, EDP Renewables Australia, secured generation revenue schemes under the government's Capacity Investment Scheme (CIS) for two projects, which will together add more than 1.7 gigawatts of combined solar and battery capacity to the national energy grid. Advertisement
The Punchs Creek project in Queensland's Toowoomba region is expected to reach financial close by 2026, with the plant commissioning planned for early 2029. The project will include 480 megawatt peak (MWp) of solar generation capacity and a 400 MW battery energy storage system (BESS). Meanwhile, the Merino project near Goulburn in New South Wales is planned to reach ready-to-build status in the second half of 2026. It will feature 530 MWp of solar power and a 450 MW BESS, contributing significantly to the region's renewable energy capacity.
The CIS aims to promote investment in renewable energy and dispatchable clean capacity, such as battery storage, by providing a long-term revenue safety net. Under this scheme, projects receive guaranteed support if market revenues fall below a set minimum, while also allowing them to benefit if revenues exceed a capped level. These agreements are designed to reduce investment risks, making large-scale renewable projects financially viable and attractive to developers.
EDP's move aligns with Australia's growing focus on expanding renewable energy capacity and ensuring grid stability. The country has increasingly encouraged private investment in solar and battery storage to support the energy transition and meet its climate targets. By participating in the CIS, EDP can secure predictable revenue streams for its projects while contributing to Australia's shift toward low-carbon power.
The company has previously undertaken several renewable projects globally, including in Europe and the Americas, and this expansion in Australia represents a strategic step in strengthening its presence in the Asia-Pacific renewable energy market. Both Punchs Creek and Merino are expected to enhance energy reliability in their respective regions, combining solar generation with battery storage to ensure consistent power supply even when renewable output fluctuates.
Source Reuters
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