AGL Doubles Down On Renewable Storage
AGL’s transition away from coal and into cleaner energy continues to take shape — this time, with the acquisition of the Yadnarie solar and long-duration energy storage project in South Australia. (1) This move follows the company’s recently profiled efforts in Broken Hill and represents another real-world investment in the technology and infrastructure needed to meet Australia’s future energy demands.
Purchased from Dutch based Photon Energy Group for a reported €4 million (around $7.2 million), the Yadnarie project is being billed as a scalable, firmed renewable solution built on RayGen’s PV Ultra and Thermal Hydro technology — an Australian innovation that combines high-efficiency solar generation with long-duration energy storage. (2)
A Firm Step into the Future
Located near Cleve on the Eyre Peninsula, the Yadnarie site offers AGL the option to develop up to:
150 MW of solar PV capacity
90 MW of thermal generation
720 MWh of energy storage — enough for 8 hours of firmed dispatch
The significance of this cannot be overstated. While the industry has seen a flood of renewable generation announcements in recent years, few have tackled the thorny issue of long-duration storage head-on. The Yadnarie project does just that.
According to Travis Hughes, AGL’s GM of Power Development, “This project incorporates RayGen’s innovative solar-and-storage system technology as one potential solution to the need for long duration energy storage.” It’s not just a theoretical step — it builds on AGL’s ongoing commercial relationship with RayGen, including an existing offtake agreement from the company’s Carwarp Power Plant and a direct equity investment.
How RayGen’s Tech Works
RayGen’s system relies on a mix of solar generation and thermal storage. Mirrors are used to concentrate sunlight onto advanced Australian-made PV modules that generate electricity and capture heat. The heat is then stored in insulated water reservoirs, creating an energy buffer that can be tapped as needed — particularly in the evening or during periods of low solar output.
This approach addresses one of the biggest shortcomings of traditional renewable assets: variability. While lithium-ion batteries are great for short bursts of power, they’re less suited for multi-hour storage. RayGen’s Thermal Hydro solution is designed to fill that gap, positioning itself as an alternative to pumped hydro with faster deployment timelines and fewer geographical limitations.
For AGL, this kind of flexibility matters. The Yadnarie project becomes a natural fit within its broader goal of replacing 7 GW of retiring thermal capacity with 12 GW of new renewables and firming by 2035.
Building on Momentum
This latest acquisition marks a notable continuation of the momentum we highlighted in our earlier coverage of AGL’s community-driven initiatives. You can read about it here. Where that project focused on building local trust and social licence, Yadnarie demonstrates AGL’s appetite for technology deployment and asset diversification.
It’s also a further sign that the company’s rebranding effort — from carbon-intensive power generator to credible participant in the clean energy economy — is more than marketing.
As reported in the Australian Financial Review, the deal comes as AGL steps up efforts to meet its public commitment to decarbonise, following a period of underwhelming investor sentiment and public scrutiny. The Yadnarie acquisition gives the company an asset that ticks both the environmental and engineering boxes — long-duration storage, solar generation, and Australian innovation in one package.
What makes this deal particularly strategic is the ability to scale. Yadnarie is a development-stage project with multiple stages, giving AGL the option to expand as market signals and grid needs evolve. It also gives them an anchor point in South Australia — arguably Australia’s most ambitious clean energy jurisdiction — which continues to punch above its weight in terms of renewable penetration.
What This Means for Investors
There are three key takeaways for investors:
Proof of Progress – AGL isn’t just talking about transition — it’s deploying capital. Yadnarie, like Carwarp before it, reinforces that its 2035 targets are linked to real-world projects, not just boardroom presentations.
Australian Tech in Focus – The continued backing of RayGen shows a preference for local IP and sovereign capability in critical infrastructure. For impact-focused portfolios, this represents a domestic innovation story worth watching.
Storage Is the Next Battleground – As more renewables flood the grid, the winners will be those who can solve the storage and dispatch problem. AGL’s bet on thermal hydro positions it ahead of peers still relying on short-duration battery installations.
The Bottom Line
AGL’s acquisition of the Yadnarie solar and storage project isn’t about a PR strategy — it’s about plugging a genuine gap in Australia’s energy future. With coal on the way out and the grid demanding reliable alternatives, firmed renewables are the next frontier. Yadnarie offers scale, flexibility and homegrown tech — and with it, a clear sign that AGL is putting its capital where its commitments are.
References
AGL Media Release: “AGL acquires Yadnarie solar and long duration energy storage project” 9 July 2025 https://www.agl.com.au/about-agl/news-centre/2025/july/agl-acquires-yadnarie-solar-and-long-duration-energy-storage-project
Macdonald-Smith, Angela, Australian Financial Review: AGL raises the stakes with SA acquisition, 9 July 2025 https://www.afr.com/companies/energy/agl-raises-bet-on-after-dark-solar-with-sa-acquisition-20250709-p5mdlb
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