The AGL Energy Limited (ASX: AGL) share price is lifting today amid a new ‘virtual battery’ deal.
The energy producer and retailer has shaken on an agreement that will see it able to virtually charge and discharge Neoen’s Capital Battery.
That will see AGL mirroring the services of a grid-scale battery for the course of the 7-year agreement.
At the time of writing, the AGL share price is $8.65, 0.93% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.43%. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 1.04%.
Let’s take a closer look at AGL’s latest renewable energy deal.
All you need to know about AGL’s ‘virtual battery’ deal
The AGL share price is in the green amid news it will soon be able to virtually charge and discharge up to 70 megawatts of Neoen’s 100-megawatt Captial Battery.
The deal will see AGL consistently supplying the electricity grid while balancing its customer portfolio.
Construction of the battery kicked off in December. It’s expected to be up and running in the Australian Capital Territory in the first half of 2023.
AGL chief operating officer, Markus Brokhof, said the partnership will help the company’s “orderly and responsible” transition to renewable energy.
“AGL’s energy transition will be powered by innovations like this, bringing flexible capacity into the market and supporting increased investments in renewable energy, allowing us to prioritise customer supply while we make progress towards net zero,” he continued.
Neoen is a French renewable energy producer. It will soon operate grid-scale batteries in 3 out of 5 of the National Energy Market’s states.
Its deal with AGL is said to be “integral” to the development of the Capital Battery.
“Our aim is to strike a balance between meeting Australia’s current and future energy needs while transitioning in a responsible way,” said Brokhof.
AGL share price snapshot
After a disastrous 2021, the AGL share price is on the up this year.
It has gained 37% year to date. Though, it’s still nearly 8% lower than it was this time last year.
The post AGL share price in the green amid ‘virtual battery’ deal appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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