OX2 entered the Australian market in May 2023 through the acquisition of ESCO Pacific, an Australian focused utility scale renewable energy developer and asset manager.
Australia is divided into two main disconnected networks: National electricity market (NEM) on the East coast and Wholesale electricity market (WEM) on the West coast. OX2 operates in NEM, primarily in the states of Victoria, New South Wales, and Queensland.
Conditions for solar and onshore wind are favorable in terms of irradiation, land ownership, and large project sizes.
Australia is a large, attractive renewables market for OX2:
- A sizeable electricity market of 265 TWh
- Strong case for renewables due to high fossil share, approximately 70 percent
- Strong build-out expected with 90 GW of new solar and wind needed to replace 180 TWh of fossils
- Attractive solar and onshore conditions including irradiation, land ownership, and large project sizes
Furthermore, there is strong support from Federal and State governments, strong investment appetite, and increased momentum in the power purchase agreement (PPA) market.