NEOEN SA (EPA:NEOEN) - Neoen launches construction of mainland France’s largest grid battery storage facility

Transparency directive : regulatory news

29/11/2018 22:56

MEDIA RELEASE

Paris, November 29, 2018

Neoen launches construction of mainland France's largest grid battery storage
facility

Neoen (ISIN code: FR0011675362, Ticker: NEOEN), France's number one independent
producer of renewable energies and one of the fastest-growing in the world, is
today announcing that construction of the Azur Stockage project has begun. When
completed, it will be the largest power storage unit connected directly to the
grid in mainland France. With a 6 MW / 6 MWh power rating, the unit will use
its storage capacity to perform frequency regulation services for the grid,
helping keep any frequency deviation in check.

The project is coordinated with RTE and Enedis, the power transmission and
distribution operators, the Nouvelle-Aquitaine region and Azur municipality.
The Azur Stockage unit will be controlled remotely and can be activated in less
than 30 seconds to help restore grid frequency to its reference level of 50
Hz.

The project is located in Azur, a municipality in the Landes department where
Neoen is already building a 9 MWp photovoltaic facility. The command and
control system to stabilize the grid frequency, the containers for the
lithium-ion batteries and all the auxiliary equipment are being assembled in
France by Nidec ASI s.a. Nidec ASI s.a. will handle the entire turnkey project
and will then operate and maintain the storage unit, under the supervision of
Neoen's teams. Azur Stockage will be connected to the Enedis grid in February
2019.

Azur Stockage, the first unit of its kind in mainland France, will enable Neoen
and the French electricity system to prepare as effectively as possible for the
arrival of this new breed of storage unit in the European balancing reserve
market.

Xavier Barbaro, Chairman and Chief Executive Officer of Neoen, commented: "We
already own and operate the world's largest battery - in Australia - and we
recently announced that construction of Central America's largest storage
facility in El Salvador is underway. We were naturally keen to put our
expertise to work for the benefit of the French electricity market. That plan
is now coming to fruition with Azur Stockage, which is set to be France's
largest grid battery storage facility. From a technological standpoint,
lithium-ion storage is the most rapid and effective means of addressing grid
balancing requirements. It is also the most cost-competitive solution available
today. With this project, we hope to demonstrate the benefits of this solution,
which will help promote the smooth development of wind and solar energy. We are
very grateful to RTE and Enedis, the Nouvelle-Aquitaine region and the Azur
municipal authorities for giving us the opportunity to implement this project
and welcoming us on board."

Franck Girard, Chairman of Nidec ASI s.a.'s Management Board, added: "We are
delighted and proud to have been chosen by Neoen to supply the energy storage
installation used to stabilize the frequency of the French power grid. We
exported and commissioned facilities of the same type very recently in Germany
and the United Kingdom. We would like to thank Neoen for establishing this
partnership to build the first unit of its kind in mainland France."

Michel Laussu, Mayor of Azur, continued: "I'm thrilled this ground-breaking
project is going ahead in our local area. The batteries and solar farm will be
housed on land belonging to the municipal council, which is playing its part in
promoting the energy transition. We are very grateful to Neoen's teams. Once
again, their professionalism and drive have been crucial in getting this
project over the line, and they have worked closely with our municipal
staff."

Alain Rousset, President of the Nouvelle-Aquitaine region, said in conclusion:
"The Nouvelle-Aquitaine region is looking to play a leadership role in the
energy transition and has set itself the target of increasing the proportion of
its gross end electricity consumption generated by renewable energies to 32% by
2030. To meet this challenge, I launched the Energies & Storage cluster on July
12, 2017 to provide a framework for all industry players covering grids, power
generation and storage solutions. We intend to support investments, research
and innovation. Neoen's innovative Azur grid storage unit project in tandem
with grid operators dovetails perfectly with this approach, and the
Nouvelle-Aquitaine region is delighted that this experiment is taking place in
its area."

About Neoen

Founded in 2008, Neoen is France's leading and one of the world's most dynamic
independent producers (IPP) of renewable energy. With a current capacity of
more than 2 GW already in operation or under construction, and a further 1 GW
of projects formally awarded and secured, Neoen has doubled its size in over
just 18 months. Neoen is active in France, Australia, El Salvador, Zambia,
Jamaica, Portugal, Mexico, Mozambique, Finland and Argentina and has assets in
more than 15 countries. It operates Europe's most powerful solar PV farm (300
MW in Cestas, France) and the world's largest lithium-ion power reserve in
Hornsdale, Australia (100 MW/129 MWh storage capacity). At the end of 2017,
Neoen won one of the largest (375 MW) and the most competitive solar project in
Mexico. Neoen is targeting 5 GW capacity in operation and under construction by
2021. Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed since October
2018 on the Compartment A of the regulated market of Euronext Paris.

For more information: www.neoen.com

About Nidec ASI s.a.

Nidec ASI s.a. is a 100% subsidiary of NIS (Nidec Industrial Solution)
belonging to the Nidec Group (Japan).
Since its creation, Nidec ASI s.a., located near Saint Etienne, is involved in
all the automation and power electronics projects for heavy industry. Today,
Nidec ASI s.a. is also at the forefront in renewable energy applications,
especially for the optimization of production, improving its efficiency by
ensuring maximum availability. The company is the leader in electricity storage
solutions for a better integration of renewable energies into power grids.

More information: www.nidec-industrial.com

Press contacts

Havas
Hugo Boussier
Tel.: +33 (0)6 86 72 53 31
hugo.boussier@havas.com

Investors

Neoen
Axelle Vuillermet
Tel.: +33 (0)7 77 68 62 34
axelle.vuillermet@neoen.com

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