Image: AGL Energy

Australian energy retailer AGL Energy has officially acquired the South Australia Virtual Power Plant (SAVPP) from Tesla, expanding its footprint in distributed energy and virtual power plant (VPP) operations.

The SAVPP is one of Australia’s largest residential VPP networks, integrating solar PV and battery storage systems across thousands of homes. The initiative was originally launched in 2018 by Tesla, with support from the South Australian Government and the Australian Renewable Energy Agency (ARENA).

Backed by Public and Private Investment

The project attracted substantial funding during its rollout:

• ARENA provided AU$8.2 million (US$5.93 million) in grant funding.

• Tesla contributed AU$18 million in equity.

• The Clean Energy Finance Corporation (CEFC) supplied AU$30 million in debt funding.

• Additional support came from South Australia’s Grid Scale Storage Fund.

The total project cost reached approximately AU$60.6 million.

Home Solar + Storage at the Core

Through the SAVPP, Tesla offered residential systems that included 5kW of rooftop solar PV and a 13.5kWh Tesla Powerwall battery. These systems were remotely connected to operate as a coordinated network, enabling participants to store solar energy and contribute to grid stability during peak demand.

AGL’s Strategic Expansion

AGL’s acquisition of the SAVPP aligns with its broader strategy to expand in the virtual power plant and distributed energy space. The company already operates other VPP initiatives across Australia and is working to integrate more flexible, consumer-centric energy solutions.

By taking over the SAVPP, AGL inherits not only a large portfolio of distributed assets but also a model for community-based energy resilience and grid support.