Recurrent Offloads 275-MW NSW Solar-Storage Project

• Recurrent Energy sells 275‑MW solar + 120‑MW storage in NSW, spotlighting Australia’s PV-plus-storage surge to stabilize the grid and shift power to evening peaks amid coal retirements.

Recurrent Energy, a unit of Canadian Solar (NASDAQ: CSIQ), has completed the sale of a 275-MWdc solar project paired with a 120-MW battery energy storage system in New South Wales, Australia. Terms and the buyer weren’t disclosed. The hybrid asset underscores rising demand for integrated PV-plus-storage projects as Australia expands renewable capacity.

The project is designed to shift power into high-price evening hours and bolster grid stability, addressing reliability needs as coal plants retire. The sale advances Recurrent’s develop-and-divest strategy targeting long-term infrastructure investors and highlights accelerating utility-scale investment in Australia’s transition away from coal toward renewables and flexible storage-backed supply.

How will the 275‑MWdc PV and 120‑MW BESS operate and monetize in NSW?

• Operate as a semi-scheduled solar generator and scheduled bi‑directional battery with 5‑minute bidding into the NEM via AEMO, charging primarily from daytime PV and discharging to meet evening peaks and price spikes.
• Stack revenues through spot energy arbitrage: buy (charge) in low‑price hours and sell (discharge) in high‑price intervals, optimizing round‑trip efficiency and degradation costs.
• Earn FCAS income by offering raise/lower regulation and contingency services, including very fast contingency FCAS, with rapid response prioritised when energy spreads are thin.
• Firm offtake under financial PPAs or swaps with retailers or C&I buyers, using the battery to shape PV output to contract profiles and reduce imbalance exposure.
• Generate and sell LGCs from the solar component through 2030, adding a green premium; pair with corporate buyers seeking certificate-backed decarbonisation.
• Hedge market risk by selling cap products (e.g., $300/MWh caps) supported by battery discharge during extreme prices, contributing to Retailer Reliability Obligation compliance for counterparties.
• Pursue NSW/Federal support instruments (subject to awards), such as NSW Long‑Term Energy Service Agreements or the Capacity Investment Scheme, to secure floor/ceiling style revenue stabilisation.
• Provide network/system strength or inertia-like services under contract with the TNSP where grid‑forming capability or voltage support is valuable, creating additional contracted revenue.
• Reduce curtailment and constraint impacts by absorbing excess PV into the battery during constraint periods and timing exports to periods with headroom, improving effective MLF outcomes.
• Implement dynamic bidding and state‑of‑charge strategies aligned to AEMO forecasts (demand, VRE output, FCAS enablement, outage notices) to capture volatility while managing cycling limits.
• Participate in local flexibility or outage support during transmission works, charging when export limits bind and discharging to support local demand, potentially under short‑term agreements.
• Align operations with compliance and causer‑pays incentives, using precise AGC/telemetry to minimise regulation FCAS costs and maximise enablement revenue.