Two large-scale solar photovoltaic (PV) projects have been given the go-ahead after financial close was achieved on funding agreements with the Australian Renewable Energy Agency (ARENA) and the NSW Government.
The AGL solar projects, totalling $450 million, include 102 MW and 53 MW solar plants at Nyngan and Broken Hill respectively. ARENA will provide $166.7 million in funding; the NSW Government will provide $64.9 million.
The two plants will be the nation’s largest solar projects, and the Nyngan plant will be the largest in the southern hemisphere.
The Australian Solar Council has welcomed the announcement that the projects will go ahead. John Grimes, Australian Solar Council Chief Executive, called the outcome “an important milestone” for large-scale solar in Australia.
“Until now Australian banks have taken a cautious approach to large-scale solar because, while utility-scale plants are commonplace overseas, they haven’t yet been done here,” Grimes said.
“This project should change that. ARENA, backed by both sides of politics, has played a key role in bridging the financial gap, and allowing the project to succeed. ARENA has played a critical role in driving down project costs, and showing that big solar has a bright future in Australia.”
AGL expects the projects will create approximately 150 construction jobs in Broken Hill and 300 in Nyngan, with significant financial flow-on benefits to both communities. The company expects the projects will add nearly 2% to the gross regional product of each regional economy.
Construction of the Nyngan project is due to commence in January 2014, with completion anticipated by mid-2015. Construction on the Broken Hill project will commence in July 2014, and is scheduled for completion around November 2015.
The projects will produce approximately 360,000 MWh of electricity annually, which is enough to meet the needs of more than 50,000 average NSW homes.
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