A Smart Energy Hub success

The opportunity

As part of its commitment to sustainability leadership, The GPT Group is focused on setting industry standards and advancing innovation in energy management. At Chirnside Park Shopping Centre, GPT aimed to optimise energy use across the site, reduce energy costs and Scope 2 emissions, and enhance operational resilience through on-site renewable energy generation and storage.

This initiative builds on GPT’s Energy Master Plan, first launched in 2018 to transition GPT-managed assets toward a low carbon future. As a key partner in this journey, Shell Energy has contributed critical technical expertise and long-term support, collaborating closely with GPT on the deployment of resilient energy systems. As a result, Chirnside Park now operates as a carbon-neutral2 site, reflecting GPT’s long-term commitment to environmental leadership.

 

The Solution

To address these challenges and unlock new revenue streams through active participation in the energy market, GPT engaged Shell Energy to transform Chirnside Park Shopping Centre into an advanced, integrated energy solution. The implementation included:

  • 1 MW / 2 MWh Battery Energy Storage System (BESS): Owned and operated by Shell Energy, the BESS participates in demand charge management and wholesale market events.
  • 650 kW Solar Array: Generating clean, on-site energy to reduce reliance on the grid and lower overall energy costs.
  • HVAC LoadFlex Technology: Optimising chiller operations to drive energy efficiency, reduce energy costs, manage site demand and generate revenue through participation in Shell Energy’s Demand Response Program.
  • Controlled Static Var Generator Power Factor Correction (PFC-SVG): Ensuring the power supplied by the grid is used efficiently, improving the reactive power control, reducing energy costs and increasing overall system efficiency.

Smarter Energy Solutions for a Sustainable Future

By taking a holistic approach to on-site energy optimisation, culminating in a Smart Energy Hub, Shell Energy has transformed The GPT Group’s Chirnside Park Shopping Centre into an advanced, integrated energy solution that not only reduces the site’s energy consumption from the grid and operational costs, but also strengthens the centre’s sustainability efforts and supports the local electricity grid.

 

 

The Results

The Chirnside Park Smart Energy Hub has achieved impressive results since 2022, significantly improving the site’s energy performance while generating substantial financial benefits.

Key performance outcomes include:

  • 70% reduction in maximum demand levels1: Chirnside Park has lowered its peak demand by reducing usage during peak demand windows, resulting in a substantial reduction in peak demand charge costs.
  • >760,000kWh of solar energy3: The solar array has generated more than 760,000 kilowatt hours (kWh) of clean energy, equivalent to powering 350 homes annually.
  • $225,000+ in annual value4: The initiative has generated significant annual value, through a combination of, energy bill savings from energy efficiency, reduced network demand charges, demand response payments and BESS licence fees.

 

Grid benefits from the Chirnside Park Smart Energy Hub

  • Reduces strain on the local electricity network by managing site demand during peak periods through effective Demand Charge Management.
  • Participation in the wholesale energy market during high and low-price events contributes towards a more balanced energy system

 

Value streams and financial benefits

The integration of Shell Energy’s Battery Energy Storage System (BESS), LoadFlex and solar solutions has created multiple value streams for Chirnside Park Shopping Centre.

Value stream Characteristics Benefits
License Fee/Profit Share Fixed annual fees for the Shell Energy owned and operated BESS over a 15-year term, plus variable payments depending on profitability of the BESS operation. Predictable, fixed income supporting asset valuation uplift
Energy Bill Savings Reduced grid energy consumption resulting from solar generation and LoadFlex-associated energy efficiency improvements Substantial cost reductions
Demand Response Revenue LoadFlex optimises chiller operations and uses stored thermal energy to participate in demand response events during peak electricity prices, helping to shift energy use and reduce costs. Unlocks new revenue from existing infrastructure with smart controls

The project demonstrates the value for retail centres looking to optimise energy use and build smarter energy infrastructure while achieving financial and environmental goals. Through its commitment to sustainability and innovation, The GPT Group is helping to shape a greener, more resilient future for the retail sector.

Shell Energy is now supporting GPT in implementing similar solutions across its broader shopping centre portfolio. As one of the more energy-intensive in Australia, the retail sector accounts for approximately 50% of energy use in the commercial property sector and around 5% of the nation’s greenhouse gas emissions2—highlighting the importance of scalable, sustainable solutions.

Steve Rogers, Executive General Manager B2B Retail, Shell Energy

1 These figures are based on Chirnside Park lowering its peak demand on AusNet Critical Peak Demand days using multiple assets including LoadFlex, controls, PV and BESS.
2 Source: Chirnside Park certified as Victoria’s first carbon neutral shopping centre | GPT
3 Based on 2024 solar generation data.
4 Based on reporting covering the period from September 2023 to August 2024.

Sources:
https://www.gpt.com.au/news-insights/chirnside-park-certified-victorias-first-carbon-neutral-shopping-centre
Retail | energy.gov.au