Allegro & GridSoft back long-duration storage push

Allegro Energy and GridSoft have signed a Memorandum of Understanding to supply integrated long-duration energy storage systems in Australia, covering customers in the National Electricity Market and overseas markets.

The partnership combines Allegro's microemulsion flow battery technology with GridSoft's energy management software in a single offering for businesses, industrial sites and other large energy users. It will cover battery sizing, software optimisation, electricity market participation and asset management.

The move comes as energy users seek storage systems that do more than provide backup power. In Australia's power market, rising renewable generation and more volatile pricing have increased interest in storage that can shift electricity over longer periods and respond to wholesale market signals.

GridSoft's software is designed to manage site demand, renewable generation, battery operation, electricity market bidding and battery health. Allegro's flow battery system is intended for long-duration storage, generally used when energy must be stored for many hours rather than discharged quickly over a short period.

Growing demand

Long-duration storage has drawn increasing attention as grids add more solar and wind generation. These resources can create periods of surplus electricity followed by steep changes in supply, sharpening demand for storage systems that can shift energy from one part of the day to another.

Data centres are one customer group in focus. Operators are under pressure to secure reliable electricity supplies as computing demand rises, particularly from artificial intelligence workloads that can run continuously and place heavy demands on power infrastructure.

Long-duration storage could help such users draw on renewable electricity generated during periods of oversupply and use it later, when demand is higher or supply is tighter. Large industrial users face similar challenges, especially when power price swings affect operating costs.

Australia has emerged as an active market for storage investment because of the scale of its renewable build-out and the structure of the National Electricity Market. Developers and technology providers are competing to offer systems that can help customers cut energy bills, stabilise operations and participate in market services.

Commercial case

Dr Thomas Nann outlined the rationale for the agreement in comments accompanying the announcement.

"Time and time again our customers tell us that any battery system must support their primary business. This partnership is a key part of supporting that commercial case," said Dr Thomas Nann, Chief Executive Officer and Co-Founder of Allegro Energy.

He also described how the two businesses expect the combined system to work for customers.

"By combining Allegro's long-duration flow battery technology with GridSoft's intelligent optimisation platform, we are creating a solution that allows customers to focus on running their operations while the battery system automatically works in the background to reduce costs, optimise energy usage and unlock additional revenue streams," Nann said.

GridSoft Managing Director Matt Connolly said the pairing of storage hardware and software should help customers manage battery assets more effectively.

"Innovative software and long duration batteries are a natural fit. Together, they give customers better control of their energy assets and the tools to make the most of battery flexibility, optimising both business performance and returns on their investment," Connolly said.

Integrated offer

The companies intend to provide customers with a single route from initial assessment to system operation. That would include identifying the most suitable battery configuration for a site and managing the asset to improve economic returns and battery life.

For buyers, the appeal of a combined offer is often its simplicity. Commercial and industrial energy users can face a fragmented market in which hardware, software, trading and maintenance are sourced separately, adding complexity when projects are being evaluated.

By linking storage technology with optimisation software from the outset, the partnership aims to address those issues in one package. The emphasis is on long-duration storage, a segment seen as increasingly relevant as power systems rely more heavily on variable renewable generation and as large electricity consumers seek more control over cost and reliability.

The agreement reflects a broader shift in the storage market, where suppliers are seeking to show not only that batteries can store power, but that they can also be operated as active commercial assets in increasingly dynamic electricity markets.