The developer of a new solar farm at Kidston, northwest of Townsville, has secured $100 million in project finance to proceed with the 50 megawatt (mw) stage one.
Genex Power Limited announced on Tuesday that it had entered into a debt funding arrangement with Société Générale, one of the largest European financial services groups, and the Clean Energy Finance Corporation.
This finalises all necessary funding requirements for the engineering, construction and procurement and the operation and maintenance costs of the project.
Genex said the project was the largest project to have received finance under the CEFC’s large-scale solar financing program, following CEFC’s recent $150 million commitment to three New South Wales projects.
CEFC large-scale solar lead Gloria Chan said the corporation was delighted to be part of the Kidston Solar Project Phase One, with tailored finance helping accelerate the construction and delivery of the 50mw large-scale solar farm on this unique site.
“Energy storage solutions such as pumped hydro are one of the next steps in our clean energy transition,” Ms Chan said.
“With the cost of solar generation continuing to decline, we are committed to working with developers such as Genex to finance opportunities that can complement Australia’s growing renewable energy capacity, by adding energy storage and grid stability services.”
Genex will now look to developing the 270mw stage two of the solar farm and a 250mw pumped storage hydro project.
Australian Renewable Energy Agency (ARENA) chief executive officer Ivor Frischknecht said the project would contribute towards ARENA’s vision for a smooth transition to a renewable energy future by increasing the reliability and security of renewable energy.
“Kidston holds the tantalising proposition of being Australia’s first large-scale solar project capable of delivering renewable energy into the grid around the clock,” Mr Frischknecht said.
“The plant could potentially contribute towards powering an adjacent 250mw pumped hydro storage plant Genex is developing with ARENA support.
“This would allow renewable energy to be stored through the day and delivered when needed most,” Mr Frischknecht said.
Stage One fast facts
- Produce 145,000 megawatt hours per year
- Power 24,484 Australian homes with renewable energy
- Offset 120,000 tonnes of CO2 per year
