Under the terms of the power purchase agreement, Origin will purchase 100% of the output and large scale renewable energy certificates (LRECs) from the Clare Solar Farm that will be built 35 kilometres west of Ayr in northern Queensland for 13 years.
FRV will commence construction on the 300-hectare site later in 2016, with operations expected to commence in 2017 after a 12-18 month build. The agreement will expire in 2030.
Origin has also secured an option to develop a further 35 MW of capacity at Clare.
The deal follows the signing of a 15-year agreement with FRV for the solar power generated by the existing 56MW Moree Solar Farm in northern New South Wales in March and further signposts Origin’s commitment to adding more renewable energy into its portfolio.
“The cost of solar is falling rapidly compared to other renewable resources and Origin is well-placed to capture opportunities towards our aspiration to be Australia’s number one renewables company,” Origin Energy Markets CEO Frank Calabria said.
“Now is the ideal time to invest in solar and we have been actively looking for opportunities to diversify and add more renewable energy to our portfolio.
“The sunshine state is ideal for generating solar and Clare Solar Farm is in an optimal location close to existing transmission infrastructure, as is Origin’s approved Darling Downs proposal in southeast Queensland.”
Origin is planning a 106-200MW solar farm at Dalby, and last month awarded the construction contract to RCR Tomlinson.
The 200MW plant will be co-located with Origin’s 630MW gas fired Darling Downs Power Station.
Half of the capacity for the Origin project has been shortlisted in the Australian Renewable Energy Agency’s $100 million large scale solar auction.
Once Origin receives ARENA funding and makes a final investment decision RCR’s contract will be activated for early construction work.
The Darling Downs is shaping as a potential hub for solar energy, with Canadian Solar’s smaller Oakey Solar Farm venture also on the ARENA shortlist, while private Australian company Solar Choice has even larger plans.
It wants to develop its own $1 billion Darling Downs project and, subject to funding and approvals hopes to begin construction at a location at Bulli Creek, west of Toowoomba within 12 months.
Developer Solar Choice says the aim is to start with a 550MW development and scale up to two gigawatts.
Origin’s Calabria said FRV’s Clare Solar Farm will generate more solar energy than any other Australian project, utilising single-axis tracking technology with panels that follow the sun to maximise generation capacity throughout the day.
The Clare PPA will increase Origin’s owned and contracted renewable portfolio to more than 700MW.
“Origin has a strong track record of supporting and underpinning investment in renewables through power purchase agreements, including Snowtown II in South Australia, and the signing of this agreement means construction at Clare can commence towards the end of the year,” Calabria said.
FRV CEO Rafael Benjumea said the Clare PPA was “a strong vote of confidence in FRV’s ability to deliver large scale solar projects in Australia”
As well as utility scale solar, Origin is building Australia’s largest solar canopy at Westfield Marion in Adelaide, a 263 kilowatt solar array on the roof of the Royal Australian Mint in Canberra and is planning to build a 3MW system on the roof of the new Tonsley technological precinct in Adelaide.
Origin has close to 400,000 customers with rooftop solar.
The diversified utility says it supports Australia’s bi-partisan commitment to reduce carbon emissions by at least 26% by 2030 from 2005 levels, and says that renewables are more attractive than ever as utility scale solar and wind generation costs fall.
Australia needs to develop 14 terawatt hours of new renewables to meet its 33TWh target by 2020, including 5000MW of wind generation, and the price of LRECs are rising in response to new build requirements, which will displacing baseload generation, primarily coal-fired power.
