Smart Investments: Zen Energy

smartMonday members have helped to create 181 jobs at a new battery storage facility in rural South Australia by investing in clean energy security.

On a rural site 60km north of Adelaide and adjacent to an existing electricity substation, work is now underway on a 111MW/291MWh energy storage project, which will store energy produced by solar and wind and deploy it to the national energy grid as needed. It’ll also increase the state’s capacity to handle more renewable energy generation, which will ensure a smooth and regular energy supply – and helps Australia fulfil its international climate commitments, which include obligations to limit greenhouse gas emissions.

It makes good business sense. The fossil fuel-intensive energy sector in Australia has been underperforming – returning minus 1% in the past year, with 90% of coal-fired power stations set to shut down in the next decade. So super funds and other investments that include them haven’t done as well as those who exclude them, showing that fossil fuels are for dinosaurs.

In fact, financial analysis showed that fossil fuels have been dragging investments down for as long as 10 years! Plus, keeping money out of polluting industries gives us more space to invest in other growth areas such as healthcare, social enterprise, and renewable energy, like Zen Energy.

Zen’s new battery project is supported by a long-term renewable energy contract with the South Australian Government, and the company is committed to forming mutually beneficial relationships with the local community including traditional custodians Ngadjuri people.

Our investment team selected this project for its attractive yield and credible business plan. Investments like this are classed as alternative assets – a ‘slice’ of an actual building, infrastructure or enterprise – such as airports, highways or solar farms.

Because they’re not part of the stock market – or subject to its ups and downs – alternative assets like Zen’s battery storage are seen as a stable component of investment portfolios, and a critical part of building superannuation member retirement outcomes – all while unlocking climate solutions and benefiting rural communities.

All information is general only and does not take into account your personal objectives, financial situation or needs. Before making any financial decisions you should consider speaking with a financial adviser to obtain advice tailored to your personal circumstances.