GENEX EXECUTES AUTOBIDDER OFFTAKE AGREEMENT WITH TESLA FOR THE BOULDERCOMBE BATTERY PROJECT
- Agreement executed to operate the Bouldercombe Battery Project utilising Tesla’s proprietary real-time trading and control platform, Autobidder;
- Autobidder employs a machine learning algorithm which will optimise dispatch behaviour from the BBP, maximising revenue and operating efficiency;
- As a key part of the Agreement, Tesla will provide a minimum level of contracted revenues to support project financing for the development of BBP, a significant step towards achieving financial close of the Project;
- Importantly, the Agreement delivers the ability to capture revenue beyond a fixed guaranteed amount to ensure that Genex participates in the revenue upside from significant pricing events; and
- The unique integration of Tesla Megapack and revenue support arrangements via Autobidder for the BPP reduces the Project’s complexity by effectively streamlining the development, construction and operations phases at BBP.
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Interesting announcement - we'll see if inclusion of the word 'Tesla' sparks a reaction in the share price. It sounds like this platform is an alternative to that which is offered by Energy One but happy to be corrected if anyone knows any different. If it is do you want to go up against the big successful incumbent in the Australian market - not sure...
It makes sense to guarantee a level of revenue but be able to capture the upside during significant events. In another life I worked for an energy company (mainly coal and gas) and the way the market operates means that huge profits could be made during significant peaks of demand - often those peaks were caused by some assets going offline so obviously you needed to be one of those that didn't! Those peaks were so profitable they justified the existence of gas peaking plants, which are really significant assets that literally sit around gathering dust for the vast majority of the year. It's unprofitable to generate electricity from gas most of the time. But what they are capable of doing is waiting until until one of these events occur and then spinning up in 15 or 20 minutes and providing power for maybe just an hour or so. Prices could go so high that 2 or 3 of these events a year could justify these assets.
I'm a relatively recent owner of Genex in RL only and am slightly underwater at the moment. I suspect like some others I follow Value Downunder on Twitter a bit (who incidentally has gone to work with Rask). Here is a link to deep dive posted by them.
