VH Global Sustainable Energy Opportunities plc announced that it has agreed to acquire and build two fully-permitted solar PV sites with co-located battery energy storage systems ("BESS") in New South Wales ("NSW"), Australia for a total consideration of £16.9 million. This investment is part of the Australian solar PV and storage investment programme (the "Australian Energy Transition Programme") as announced on 2 August 2021. With this investment the aggregate commitment to the programme has increased from the initial commitment of £50 million to £58.5 million, reflecting the progressive increase in cost of BESS procurement on the hybridised sites since initial investment was approved.

As previously announced, Phase I of the Australian Energy Transition Programme consisted of the acquisition of two operating solar PV sites in South Australia and Queensland with a combined peak capacity of 17MW (connected capacity of 12MW). Phase II involved the construction of co-located BESS to the South Australian asset, which was successfully completed in July 2023. The Company subsequently acquired and constructed three new solar PV sites of 4.95MW, located in NSW, which was completed in First Quarter 2024.

Installation works for the co-located BESS To all three NSW sites has commenced and the sites are expected to be hybridised in Fourth Quarter 2024. The announcement adds two 4.95MW solar PV sites in NSW to the programme, with co-located 2-hour BESS on each site, bringing the total capacity of the Australian Energy Transition Programme to 37MW/60MWh, across seven assets. The construction of these two hybrid sites is expected to begin in Second Quarter 2024, with completion expected in early 2025.

As with the South Australian hybrid project, which successfully captured more attractive power prices in the intraday market following the addition of the two-hour BESS, co-locating solar PV and BESS provides the system with additional renewable energy. It also supports grid stability with the storage solution, allowing the assets to better serve the needs of the Australian power market in its energy transition. Notably, GSEO expects to gain access to additional energy arbitrage as well as frequency stability services revenue streams from the co-located BESS.

Once fully operational, the portfolio is expected to combine merchant sales, frequency stability services revenues, long-term offtake contracts and sales of large-scale generation (green) certificates.