Genex Power has executed a revenue deal agreement with Tesla. According to the deal, Genex Power will use the Autobidder platform for the Bouldercombe Battery Project (BBP) in Queensland, Australia.
The BBP is a 50MW/100MWh battery project near Rockhampton that utilizes Tesla Megapacks. In October, Genex executed a Supply Agreement with Tesla for 40 Megapacks for the BBP.
The Autobidder Offtake Agreement is with Tesla Motors Australia Pty Ltd. Genex Power entered into the deal to gain the minimum level of contracted revenues necessary to finance the project and retain the ability to capture revenue upside beyond a fixed guaranteed amount.
“The Bouldercombe Battery Project is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland. The unique integration of Tesla’s Megapack battery technology and a revenue sharing arrangement utilizing Autobidder will reduce the complexity of the project.
“Importantly the structure of the Agreement provides a minimum level of contracted revenues to support project funding, while allowing Genex to retain significant merchant upside,” James Harding, Genex CEO, said.
As part of the agreement, Tesla will provide a minimum level of contracted revenues to support the Bouldercombe Battery Project’s financing for development. Tesla will also operate the BBP, using Autobidder to maximize revenues each year. The deal between Genex Power and Tesla will conclude after 8 years. After this, Genex will enter into a license agreement with Tesla to operate Autobidder on the BPP.
The BBP project is expected to go online within the first half of 2023. Genex planned to make all final investment decisions by the first quarter of 2022, explaining the recent revenue-sharing deal with Tesla.
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