Alinta Energy and National Renewables Network launch Virtual Power Plant
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The News: Gentailer Alinta Energy and VC-backed National Renewables Network (NRN) have launched a first-of-its-kind Virtual Power Plant (VPP) that will provide household customers with a free solar array and battery.
The numbers: NRN will own the solar and battery storage systems, which are worth $20,000 to $40,000 depending on a household's size and energy usage. Alinta will market the systems with a discounted electricity price plan as part of its Solar Together program, which was trialled with 60 customers in 2024.
NRN aims to add 2000 customers in its first year of operation through Alinta's Solar Together plan and other power retailers, which could be increased up to 10 times in the second year. The systems will remain the property of NRN until the end of their 12-year lifespan, after which ownership will revert to the customer.
Alinta did not provide a forecast of how many customers it aims to add to its $1.1 million retail base.
Customers will save 18% to 22% on their power bills compared to the default market offer, which most electricity customers pay.
NRN finances the energy systems with debt, and uses equity raised from VC investors for general corporate purposes. It is currently undertaking a Series A raising that is expected to close before the end of August.
The context: Alinta operates gas-fired generation in Victoria and Queensland, the Loy Yang B coal-fired power plant in Victoria and the Solar River project in South Australia, as well as several gas-fired generators and a wind farm in Western Australia, which operates on a separate electricity grid.
The new VPP will help Alinta meet rising electricity demand from more households charging EVs and an increasing number of data centres on its network. Alinta will initially market the VPP to new customers, focusing on demographics that would not otherwise be able to afford a solar and battery system.
Virtual Power Plants allow energy retailers to draw electricity stored in their customers batteries in an "orchestrated" way, with safeguards in place to ensure batteries aren't fully drained in times of peak electricity demand.
NRN will allow customers to purchase the solar and battery systems before the end of their lifespan at a depreciated rate, which will allow them the flexibility to own the system outright if they choose to move house.
Alinta's rivals AGL Energy and Engie Australia already operate VPPs, however they require customers to fund their own solar and battery systems.
What they said: "This offer is now available to consumers in New South Wales and South Australia, and we're working on plans on how we could extend it further into Queensland and Victoria," said Alinta Energy GM Product and Pricing Nicole Bolan.
"We intend to expand this VPP and battery package to other retailers as well as Alinta Energy, to allow more households the opportunity to use renewable energy at no additional cost to them," said NRN CEO Alan Hunter.
The sources: National Renewables Network Media release, Alinta Energy interview.
