This marks the beginning of a significant 15-year agreement with AMPYR Australia and InCommodities for battery storage. Under this deal, it will develop the Bulabul Battery Energy Storage System (BESS) in Wellington, Central West New South Wales. This strategic partnership is valued at over $300 million and marks InCommodities’ first long-term commitment in the Australian energy market, highlighting the increasing importance of battery storage in Australia’s energy transition.
The Bulabul BESS uses excess solar energy. Beyond environmental benefits, it provides an important source of firming capacity needed to ensure stability for the grid as we increase the share of renewable energy. The system has a capacity to produce 300 megawatts (MW). Its massive resources mean it can provide enough electricity to power 300,000 homes for two hours during periods of highest demand.
Enhancing Grid Stability
Australia is making great strides toward a greener, cleaner energy future. Battery storage systems, such as Bulabul BESS, are a crucial component in leading the charge on this journey. The agreement between AMPYR Australia and InCommodities underscores this shift, emphasizing the need for reliable energy solutions that can balance supply and demand.
Located near Adelaide, Bulabul BESS will play an important role in firming renewable energy generation by providing the electricity needed most during periods of peak usage. This capability will not only enhance grid stability but contribute to a more resilient energy infrastructure aligned with the country’s sustainability goals.
“InCommodities’ entry at scale into the Australian battery and storage market is a welcome and significant development. It will enhance competition and drive better, more innovative outcomes for consumers.” – AMPYR Australia CEO Alex Wonhas
A New Player in the Market
InCommodities, a Danish financial intermediary, hopes this agreement will help speed up Australia’s Renewable Energy transition. From your typical churn-and-burn, short-term trading model. This commitment gives it the authority to make long-term decisions that will fundamentally alter the lay of the market.
Andrew Koscharsky, head of power trading, InCommodities Australia and New Zealand, shared their audacious vision, “We have come into the Australian market to accelerate the renewable transition. A nontraditional global player, we are making actionable trading decisions with horizons that go well beyond the two- or three-year timeframes that current traders may typically employ.
This move is a radical step toward an unprecedented transformation of Australia’s National Electricity Market. Few financial intermediaries have historically engaged with long-term offtake agreements.
A Step Forward for Renewable Energy
The partnership between AMPYR Australia and InCommodities highlights not only the growing role of battery storage but the changing dynamics of energy production and consumption in Australia. As renewable energy continues to grow, more and smarter solutions are needed to maximize their value. Bulabul BESS will be a key part of power protecting our nation’s energy future.
This agreement includes a capacity swap agreement that allows further trade of 120 MW of additional power. This injection of new capital greatly improves market flexibility and responsiveness. This move demonstrates a thoughtful way of balancing introducing more renewable resources into our energy portfolio with keeping a reliable system for consumers.
