WA solar project reboot puts Pilot Energy in data-centre power race
- Rowena Duckworth
- 1 day ago
- 2 min read
Pilot Energy (ASX: PGY) has taken another decisive step in its clean energy transition, striking a binding agreement with renewables partner SN Energy to jointly develop a hybrid solar and battery storage project at its Three Springs site in Western Australia.
Under a binding heads of agreement, the parties will co-develop a hybrid solar and battery energy storage system (BESS) at the solar development site, located just north of Perth. The project has also been designed to support a proposed 50-megawatt (MW) data centre, positioning the site as a future-ready clean energy hub.
As part of the deal, SN Energy will fund the acquisition of land near Three Springs that was originally earmarked for a state government-approved stand-alone solar project. Pilot will receive total consideration of $10.75 million in upfront and milestone payments for the land acquisition. The funds will also cover the costs associated with progressing grid connection works and lodging a new development application for the hybrid solar BESS and data centre project.
The hybrid strategy reflects a growing market demand for deliverable green energy solutions, particularly from energy-hungry data centres. Globally, data centres already consume an estimated 2–3 per cent of electricity output, with demand accelerating rapidly due to artificial intelligence and cloud computing. In some regions, data centre power usage is forecast to account for up to 15 per cent of national electricity demand.
Locating a data centre in sun-soaked Western Australia and pairing it with solar generation and large-scale batteries is a logical solution. The inclusion of battery storage enables excess solar energy to be stored and dispatched during periods of peak demand, overnight or during grid outages, delivering a more reliable, around-the-clock power supply.
The co-location of solar, battery storage and high-demand infrastructure such as data centres creates dedicated renewable energy hubs that reduce emissions, lower operating costs and ease pressure on local power networks. The approach may also offer greater energy independence, aligning with global trends towards decentralised, clean energy systems.
The deal remains subject to customary conditions precedent, including due diligence and final documentation. A definitive joint development agreement is expected to be completed by early to mid-February.
The joint development agreement with SN Energy enables Pilot to realise a significant amount of capital while delivering a much-enhanced hybrid project. The project now meets market requirements for firmed renewable power solutions and provides flexibility for a proposed 50MW data centre as a behind-the-meter customer.
Pilot Energy Managing Director Brad Lingo
To support near-term progress, Pilot has also secured a $500,000 short-term unsecured loan from existing shareholders on commercial terms.
The latest deal marks another milestone in the company’s steady corporate evolution. Established initially as an oil-focused explorer and producer, the legacy oil junior has progressively repositioned itself towards lower-carbon opportunities, including carbon capture and storage initiatives.
With this pivot into solar generation and battery storage, Pilot has now completed its transformation into a diversified clean energy developer, aligned with the energy transition and the growing demand for reliable, low-emissions power infrastructure.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au