Portuguese energy giant EDP Renewables has signed an exclusivity deal with the Queensland Investment Corporation for the development of its giant Punchs Creek solar battery hybrid project, confounding the modelling in the state LNP government’s newly released energy roadmap.
The deal between EDP and QIC, announced on Tuesday, is expected to pave the way for a long term power purchase agreement for the project, which will combine 400 MW of large scale solar combined with a 400 MW, 1,600 MWh battery.
EDP says the project – located near Toowoomba – is expected to reach financial close in 2026, and it says it is in “advanced negotiations” with a long term customer.
Punchs Creek is also one of 12 solar and battery hybrid projects to have been awarded an underwriting agreement under the federal government’s Capacity Investment Scheme. EDP also won an underwriting deal for its slightly bigger 450 MW Merino solar farm that also comes with a 450 MW, 1800 MWh battery.
For QIC, it caps a busy week that started with the agreed purchase of AGL Energy’s 19.9 per cent stake in Tilt Renewables. QIC has also become the centrepiece of the LNP’s new investment in energy.
The LNP unveiled its energy roadmap in early October, hailing its decision to cancel the planned early closure of its coal generation fleet, and its numbers suggested it was counting on no new wind and solar projects other than those already under construction, in commissioning, or contracted.
But many in the renewables industry are quietly confident that their most advanced projects will get developed anyway, largely because of the increased demand forecasts, driven by electrification, the uptake of EVs and the arrival of data centres as major consumers of energy.
Miguel Fonseca, CEO of EDP Renewables APAC said the partnership with QIC – which will presumably involve some sort of co-ownership – is important for the company as it seeks to build its first major projects in Australia.
“Through projects like Punchs Creek Renewable Energy Project, we aim to deliver material solar and battery energy storage capacity to help accelerate the country’s clean energy transition,” he said in a statement.
“Working alongside a trusted partner like QIC allows us to combine global expertise with deep local knowledge to deliver impactful and sustainable results.”
QIC Head of Global Infrastructure Ross Israel said Australia’s energy transition require partnerships of complementary capabilities to accelerate the deployment of renewables and storage infrastructure at scale.
“While EDP has an operational footprint spanning four continents, Punchs Creek Renewable Energy Project marks one of their first Australian projects as part of a pipeline of solar and battery storage opportunities.”
“This pairing provides a strong platform to deliver new renewable generation at scale and speed, demonstrating both the attractiveness of Queensland as an investment destination and QIC as a trusted local partner.”
Both parties said they are currently negotiating the transaction documents related to this joint investment.
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Giles Parkinson
Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.
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