HD Renewable Energy announced the signing of a memorandum of understanding with Australian electricity retailer ZEN Energy, marking a significant step in its expansion into the Australian energy market. The agreement encompasses a 500MW optical storage power plant usage agreement (Tolling Agreement), collaboration on a 4MW virtual power plant, and development of energy storage projects. Additionally, both companies plan to explore future cooperation in green energy projects such as green hydrogen.
HD Renewable Energy officially established its Australian branch in April, aiming to export its proprietary TITAN software and hardware integration services. The company plans to penetrate the spot market, ancillary service market, and capacity market in Australia. The “Tolling Agreement” model allows the power plant owner to secure stable, long-term income while enabling the electricity retailer to meet power supply demands and operate the facilities under mutually agreed conditions, maximizing profits and minimizing risks.
In its Australian market expansion, Hongde Energy has secured development and engineering contracts for 70MW of energy storage projects, with an additional 5MW optical storage project set to commence construction in the second half of the year. The partnership with ZEN Energy ensures a stable and long-term revenue stream through the signed usage agreement. This collaboration will bolster Hongde Energy’s presence in the Australian power market and facilitate the implementation of the TITAN smart power system in local operations.
ZEN Energy, established in South Australia in 2004, initially focused on rooftop solar photovoltaics. It obtained an electricity retailer license in 2017 and became the first supplier to sign a long-term electricity retail contract with the South Australian government. In 2022, ZEN Energy’s annual sales reached 1 million MWh, primarily sourced from wind power and renewable energy.
The partnership between HD Renewable Energy and ZEN Energy represents a strategic alignment to enhance green energy solutions and strengthen the renewable energy infrastructure in Australia, positioning both companies for significant growth and innovation in the sector.
