PRESS RELEASE
16 July 2025

AGL Acquires Tesla Virtual Power Plant In South Australia

KL
Herbert Smith Freehills Kramer LLP

Contributor

Herbert Smith Freehills Kramer is a world-leading global law firm, where our ambition is to help you achieve your goals. Exceptional client service and the pursuit of excellence are at our core. We invest in and care about our client relationships, which is why so many are longstanding. We enjoy breaking new ground, as we have for over 170 years. As a fully integrated transatlantic and transpacific firm, we are where you need us to be. Our footprint is extensive and committed across the world’s largest markets, key financial centres and major growth hubs. At our best tackling complexity and navigating change, we work alongside you on demanding litigation, exacting regulatory work and complex public and private market transactions. We are recognised as leading in these areas. We are immersed in the sectors and challenges that impact you. We are recognised as standing apart in energy, infrastructure and resources. And we’re focused on areas of growth that affect every business across the world.
AGL has announced the acquisition of a network of residential solar and Powerwall home battery systems, known as South Australia's Virtual Power Plant (SAVPP) from Tesla this month.
Australia

AGL has announced the acquisition of a network of residential solar and Powerwall home battery systems, known as South Australia's Virtual Power Plant (SAVPP) from Tesla this month.

Herbert Smith Freehills Kramer (HSF Kramer) Projects, Energy & Infrastructure team advised AGL on the acquisition, led by energy partners Peter Davis and Alison Dodd, senior associate Codie Asimus, and solicitor Clinton Wang.

The SAVPP is one of the largest VPPs in Australia and an established model that combines the creation of a significant Consumer Energy Resource with delivery of renewable and lower cost energy to local community and social housing residents in South Australia. It includes a distributed solar capacity and about 7,000 Powerwall home batteries, with more expected to be installed this year.

HSF Kramer energy partner Peter Davis said, "The SAVPP acquisition demonstrates the value of Consumer Energy Resources (CER) as part of the energy mix.

"It is also great to see CER developed in a way that allows a wider group of consumers to benefit from the energy transition. We look forward to the further development of these models including as part of the AGL Community Power program as it expands across Australia."

The deal is another example of HSF Kramer's market-leading work on major energy projects. Other recent examples include:

  • METLEN Energy & Metals on the portfolio financing of its Munna Creek solar farm projects in New South Wales and Queensland.
  • The international syndicate of lenders on the A$750 million green portfolio financing for ACEN Australia's clean energy projects
  • HMC Capital on its A$950 million renewable energy portfolio acquisition
  • Equis on the development and financing of the Calala BESS in Tamworth, New South Wales
  • EnergyAustralia on its development of the 350 MW / 1400 MWh Wooreen Battery Energy Storage System in the Latrobe Valley, Victoria
  • the syndicate of lenders on the project financing of Eku Energy's 250MW/500MWh Big Canberra Battery energy storage project
  • the lenders on the financing of Akaysha Energy's Ulinda Park BESS project.

Contributor

Herbert Smith Freehills Kramer is a world-leading global law firm, where our ambition is to help you achieve your goals. Exceptional client service and the pursuit of excellence are at our core. We invest in and care about our client relationships, which is why so many are longstanding. We enjoy breaking new ground, as we have for over 170 years. As a fully integrated transatlantic and transpacific firm, we are where you need us to be. Our footprint is extensive and committed across the world’s largest markets, key financial centres and major growth hubs. At our best tackling complexity and navigating change, we work alongside you on demanding litigation, exacting regulatory work and complex public and private market transactions. We are recognised as leading in these areas. We are immersed in the sectors and challenges that impact you. We are recognised as standing apart in energy, infrastructure and resources. And we’re focused on areas of growth that affect every business across the world.
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