Rising Costs May Push Up Neoen’s 2025, €5.3B Target Of 10GW By €750M

Rising Costs May Push Up Neoen’s 2025, €5.3B Target Of 10GW By €750M

The cost of wind, solar, and battery storage projects has risen by 20-60% over the past two years, according to French renewable and storage developer Neoen.

The firm, which has around 3 GW of renewable energy projects in Australia, said polysilicon price rises, Covid-19 lockdowns, and supply chain accidents in China were behind the increase.

Meanwhile, a lack of supply of lithium caused the cost of storage projects to surge by 60%.

Neoen expects the market to stabilize by 2025 but said costs were unlikely to return to pre-Covid levels.

The highlights of its renewable energy projects in Australia are:

  • The original Tesla Big Battery (aka the Hornsdale Power Reserve)
  • The Victoria Big Battery, now the biggest battery in Australia
  • First to deliver synthetic inertia at grid scale (Hornsdale)
  • Building the country’s biggest solar farm (Western Downs)
  • Entered a unique 24/7 baseload renewable power supply deal with mining giant BHP (Goyder and Blyth)
  • Begun construction of the biggest wind, solar and battery hybrid (Goyder South)

Neoen plans to achieve a global installation target of 10GW by 2025, and 20GW by 2030.

However, rising costs, as aforesaid, would cause a €750 million increase in the anticipated €5.3 billion cost of reaching the 10GW target for 2025.

Source: RENEW ECONOMY

Image Source of Big Battery at Hornsdale Power Reserve: Neoen



2023-03-08T15:38:57+00:00