Flow Power Secures Offtake Deal for Australia’s Largest Solar-Battery Hybrid Project
Renewable energy provider Flow Power has secured what experts are calling a “foundational” offtake agreement that promises to pave the way for innovative solar and battery hybrid systems, poised to transform large-scale photovoltaic generation in Australia.
On Monday, the Melbourne-based company announced that it has finalised a power purchase agreement with Octopus Australia for the upcoming Blind Creek solar farm and substantial battery installation, which is key to advancing the $900 million project to financial closure and initiating construction in New South Wales.
Details of the Blind Creek Project
The Blind Creek project, situated approximately 30 km north-east of Canberra, will integrate 300 megawatts (MW) of solar power with a 243 MW, 486 megawatt-hour (MWh) co-located, DC-coupled battery energy storage system (BESS). This makes it one of the largest and most sophisticated implementations of hybrid technology in Australia.
The DC-coupled configuration allows the solar installation to charge the battery without energy loss due to conversion from direct current (DC) to alternating current (AC). This arrangement facilitates the storage of solar energy during the day, when prices are often lower or even negative, and allows the energy to be used during evening peak demand periods, when prices rise.
Current Landscape of Solar-Battery Hybrids in Australia
As reported by Renew Economy, the largest DC-coupled solar battery hybrid operational in Australia is located in Cunderdin, Western Australia, which consistently delivers around 45 MW each evening until 9:30 PM, well after the sun has set and solar generation has concluded for the day.
Octopus Australia recently commenced initial site work for the much larger Blind Creek project, which it describes as a “bankable energy product” that will enhance grid reliability in southern New South Wales and aid in the transition away from coal-fired power generation.
This project marks Octopus’s second DC-coupled solar battery hybrid in Australia. The company is also developing the smaller Fulham facility in Victoria, which features 80 MW of solar power and 64 MW, 128 MWh of battery storage.
Flow Power’s Innovations and Growth
Flow Power was the first to demonstrate utility-scale DC-coupled solar and storage systems in Australia, launching its Berri project in South Australia in April 2023, which supports banking giant Westpac’s goal of sourcing 100% renewable energy.
Last year, Flow enhanced its Cootamundra Solar Farm in New South Wales with DC-coupled battery storage, and just last week, the renewables retailer acquired the Dunedoo Energy Project in regional New South Wales, which consists of 55 MW of solar power and 60 MW of BESS.
Significance of the Of-take Agreement
Flow Power emphasised that while its offtake deal with Octopus may be modest compared to the overall scope of the Blind Creek project—it has secured 40 MW of firmed generating capacity—it has been “fundamental” in achieving financial closure for the ambitious initiative.
Byron Serjeantson, COO of Flow Power, noted, “What we cherish about collaborating with partners is that even a smaller offtake can play a critical role in advancing a large-scale project.” He highlighted the potential to leverage their offtake agreements to facilitate significant developments, even with a minor stake.
Innovative Of-take Product
Serjeantson described the agreement with Octopus Australia as a “really innovative” offtake product that significantly simplifies access for companies focused on 100% renewable energy. “The innovation lies in its simplicity,” he explained, adding that businesses won’t necessarily require a dedicated energy advisor to understand the workings of this product, making it more accessible.
Flow Power’s commitment to the economics of DC-coupled solar and storage systems, having pioneered competitive renewable power supply agreements since 2017, further underscores its backing of this emerging technology.
Anticipated Completion and Future Outlook
Details of the agreement remain largely confidential, with Octopus Australia labelling terms such as contract duration, pricing, and exact power amounts as “commercially sensitive.” However, Sonia Teitel, co-managing director at Octopus Australia, stated that the key innovation of the contract involves a guaranteed block of firmed clean power during peak evening hours, supported by the solar energy stored in the battery.
Teitel expressed pride in the project, stating, “This contract structure has never been realised before on such a scale, marking a pivotal moment in the market’s transition away from coal.”
Octopus Australia’s strategic goals focus on aligning long-term capital investment with regional communities, aiming to deliver substantial renewable projects. The Blind Creek project, which is designed to support local sheep farming, has garnered financial backing from top investors, including Australian super funds, the federal government’s Green Bank, and the Big Four Australian banks.
The Blind Creek project’s anticipated commercial operations are set to commence in mid-2028, and with Flow Power’s foundational partnership, Octopus Australia is well-positioned to spearhead the introduction of scalable, future-ready renewable energy projects.
