- AGL acquired the South Australia Virtual Power Plant (SAVPP) from Tesla, gaining access to about 7,000 home battery systems to expand its green energy footprint.
- The deal supports AGL’s coal exit strategy and 1.4 GW battery storage target by 2035 while offering discounted energy to social housing residents.
AGL Energy announced on Friday that it has acquired the South Australia Virtual Power Plant (SAVPP) from Tesla. This move aims to grow AGL’s battery storage capacity and support the country’s transition to clean energy.
The deal supports AGL’s goal to exit coal-fired power and reach net-zero carbon emissions by 2035. As part of this plan, AGL targets 1.4 gigawatts of grid-scale battery storage projects within the following year.
The SAVPP is one of Australia’s largest virtual power plants. It connects around 7,000 Powerwall home batteries, and AGL expects to add more virtual power plants later this year. Installers have mainly placed these systems in South Australian social and community housing.
With this acquisition, AGL will now own and operate the SAVPP network. The program offers customers lower energy prices and helps reduce energy bills. AGL also plans to expand access to more users in the future.
“We know that upfront costs of installing solar and batteries can be a major barrier,” said AGL Chief Customer Officer Jo Egan. “We are focused on making them more accessible.”
AGL will coordinate the solar and battery systems to work together as one unit. The systems will also help stabilise the power grid when needed.
AGL did not share how much it paid for the acquisition, and Tesla, the seller, has not commented on its value.