SolarReserve’s $650m Port Augusta solar plant receives development approval
A $650 million solar thermal plant proposed for Port Augusta has passed a significant landmark, securing State Government development approval.
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A $650 million solar thermal plant proposed for Port Augusta has passed a significant landmark, securing State Government development approval.
SolarReserve still plans to start construction on the plant midyear, despite being yet to secure capital for the project and waiting on a $110 million Federal Government loan.
The company says it will look to secure financing “in the coming months” now it has secured approval for the 150MW plant, Aurora, to be built 30 kilometres north of Port Augusta.
Acting Energy Minister Chris Picton said the approval officially “triggers” the $650 million investment, which will create 650 jobs during the two-and-a-half year total construction process, as well as 50 ongoing full-time positions.
The State Government announced in August that the project had won a competitive tender process to supply 100 per cent of the Government’s energy needs from 2020.
“It’s fantastic that SolarReserve has received development approval to move forward with this world-leading project that will deliver clean, dispatchable renewable energy to supply our electrified rail, hospitals, schools and other major government buildings,” Mr Picton said.
Energy Minister Josh Frydenberg last year confirmed the Federal Government would grant $11
0 million in a concessional equity loan to a Port Augusta solar thermal project.
The agreement with then-senator Nick Xenophon was struck as part of a deal to pass its company tax cuts package.
The Federal Government is yet to expressly guarantee the loan to SolarReserve, but discussions between the two parties are ongoing.
It’s understood SolarReserve is required to provide more paperwork, including an update on its quest to secure funding — to progress talks further.
SolarReserve is still confident of securing the $110 million grant, but would not provide an update on Tuesday.
SolarReserve chief executive Kevin Smith said the approval was a “significant step” in the plant’s development.
“The remarkable story of the transition of Port Augusta from coal to renewable energy — which won a competitive tender against fossil fuel — is also a preview of the future of power generation around the world,” Mr Smith said.
“Aurora is an example of how sustainable solutions are able to foster new industries and create new jobs for South Australia.”
The State Government has provided a bridging contract for its energy supply needs to SIMEC ZEN, headed by steel baron Sanjeev Gupta.
The retailer will provide 80 per cent of the Government’s electricity needs in 2018, and 100 per cent in 2019, before the Aurora plant comes on line in 2020.