Notice of Expression of Interest for Ergon Energy Retail –Dispatchable Generation and Energy Storage

Summary and scope

Ergon Energy Retail (Principal) is the retail subsidiary of Energy Queensland (“EQL”) – Australia’s largest, wholly government-owned electricity company. The Principal sells electricity to more than 750,000 customers across Queensland and is the 4th largest retailer in the National Electricity Market (NEM). The Principal seeks commercial proposals from project owners/developers that can provide dispatch rights and/or financial arrangements that replicate storage and fast start generation facilities. The Principal aims to use the Expression of Interest (EOI) process to identify and shortlist proponents with the aim to secure up to 800MW of dispatchable capacity.The Principal anticipates EOI responses will provide rights to storage and generation facilities either through ‘physically backed’ or ‘virtual’ commercial models, but it is open to alternative commercial models. Where applicable, fuel supply arrangements (e.g. gas) need to be clearly articulated. The Principal prefers physically backed arrangements that assign current and future rights to revenue generated through operation of the underpinning reference project. However, the Principal will also consider virtual proposals. Facilities of interest are:• Battery Energy Storage Systems (BESS) – the Principal is targeting 400MW of BESS (minimum 2 hours storage) • Fast start generation including gas, or Pumped Hydro Energy Systems (PHES) – the Principal is targeting 400MW of capacityCommercial proposals can be for part, or all of the desired capacity. Reference projects underpinning commercial proposals can be either established and operational or in development but must be in Queensland and connected to the National Electricity Market.