‘Big Battery’ fuels rise in revenue for French renewable energy group Neoen

Tesla Powerpacks at the Neoen wind farm in Hornsdale, South Australia September 29, 2017. REUTERS/Sonali Paul

May 3 (Reuters) – French renewable energy producer Neoen’s (NEOEN.PA) first-quarter revenue jumped by more than a third, helped by the commissioning of one of the largest batteries lithium-ion battery in Australia, the company announced on Tuesday.

Neoen, which specializes in solar parks, onshore wind and energy storage, posted overall revenue up 36% to 109 million euros ($115 million), with storage revenue almost tripled compared to the previous year.

Rising electricity prices in Australia also helped boost revenue from its wind and solar divisions, where sales rose 23% and 31% respectively.

CEO Xavier Barbaro said the strong quarter was largely due to the commissioning of the Great Victorian Battery, which he lit last December in time for summer in the Southern Hemisphere. Read more

Capable of delivering 450 megawatt hours (MWh) of electricity, the battery aims to prevent outages in a market increasingly dependent on solar and wind power.

Neoen, which generates most of its electricity in Australia, added more than 2 gigawatts (GW) to its advanced pipeline during the quarter, while assets in operation or under construction at the end of March were stable at 5.4 GW. .

The group has confirmed its profitability targets for this year and until 2025, when it plans to have 10 GW under construction or in operation.

Barbaro said there was a “political will” to accelerate renewable energy projects in Europe, where countries seek to become independent of Russian energy, pointing to projects submitted by rivals in Italy.

The company hopes France‘s election of a new prime minister in June will help speed up building permits in its domestic market after the country re-elected President Emmanuel Macron this month.

Far-right challenger Marine Le Pen had proposed a moratorium on new wind and solar farms and to dismantle existing turbines. Macron, meanwhile, promised more offshore solar and wind projects, but less focused on onshore wind. Read more

In Mexico, where lawmakers last month rejected an electricity reform proposal that would have favored the public operator, Neoen said it needed more clarity before investing in a second project to complete its solar farm in Aguascalientes. Read more

($1 = 0.9489 euros)

Reporting by Sarah Morland and Dina Kartit Editing by David Goodman

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