The Darling Downs solar farm project exchanged hands today with Origin Energy selling the site to the APA group.
APA will take on the development cost and acquisition of the plant which will total an estimated $200 million and a grant by the Australian Renewable Energy Agency’s (ARENA) Advancing Renewables Program.
Construction of the plant is expected to be completed by 2018, and is one of the largest approved Australian solar farms.
The plant is located 45km west of the town of Dalby south-western Queensland, a location with great solar resources; Dalby receives solar irradiation levels of around 5.17 kilowatt hours per square metre daily, according Energy Matters.
Solar farm: Large amount of energy output
It is expected to be able to power around 32,000 homes and will connect to the already established Darling Downs Braemar substation which connects to the National Electricity Grid according to a press release by APA.
The plant will be 110 megawatt(MW) and as part of the deal APA has agreed to a long term off take agreement with Origin Energy till 2030.
APA Group Managing Director, Mick McCormack saying “I am always pleased to announce new growth projects. APA continues to grow its capabilities in owning and operating significant energy infrastructure as part of its growth strategy.”
“This will be APA’s second solar project and like the Emu Downs Solar Farm in Western Australia that we recently announced, the Darling Downs Solar Farm will utilise ARENA funding.”
Investing in another renewable energy project
On the completion of sale Origin Energy has announced in a press release that they intend to enter into another solar power purchase agreement (PPA).
Origin CEO, Frank Calabria saying “Origin is delighted to be securing another long-term agreement to purchase renewable power, while simultaneously announcing the sale of Darling Downs Solar Farm to APA.”
The deal is set out for Origin Energy to purchase all of the energy and the Large-scale Renewable Generation Certifications (LGCs) generated by the solar farm.
Financial close is expected to complete on the 1st May 2017.
