Based on the conditional order, Azelio AB will, through an SPV (Special Purpose Vehicle), install solar power and its long-duration energy storage system for clean, low-cost power. Electricity will be supplied to MPG Built Pty Ltd (MPG Built) based on an Energy-as-a-Service (EaaS) model.

The SPV will implement, own, and operate the power system and provide energy to MPG Built at terms defined in the agreement. MPG Built acting as a merchant, will on-sell the power to the grid. The agreement covers 20 years and is expected to generate a positive return for the SPV and Azelio. First year’s revenue is expected to be EUR 300,000 – 400,000.

The agreement, estimated to require investments of EUR 3 – 4 million, is subject to Azelio arranging financing for the SPV, which is expected to be facilitated by the solar element of the project. Further conditions to be met are customary at this stage of the project.

The PV part of the system is expected to be installed and in operation in 2023. Delivery of the energy storage system, and the start of operation of the complete power system, are expected in 2024.

“As Australia has excellent market conditions for our long-duration energy storage solution, I am very happy to take this important step in the Australian market. This can help pave the way for a broader introduction of our technology in the region, and I am convinced that long-duration energy storage solutions, such as ours, can play a great role in increasing the use of renewable energy in this part of the world”, says Azelio’s CEO Jonas Wallmander.

MPG Built is a fully owned subsidiary of Molnar Property Group. Molnar Property Group, established in 1995, is a privately-owned property development and building company with experience including residential, light industrial/commercial, and solar farms.

Image source: Courtesy of Azelio

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