Solar farms to gain as SA-NSW powerline project nears decision time
Solar energy projects worth billions of dollars and hundreds of jobs stand to gain from construction of the NSW-South Australia electricity interconnector.
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Solar energy projects worth billions of dollars and hundreds of jobs stand to gain from construction of the NSW-South Australia electricity interconnector.
The most advanced project, Solar River, is close to finalising funding and a deal for purchase of energy it generates from its farm near Robertstown.
The interconnector would “help unlock the entire region for solar”, Solar River chief executive Jason May said.
“We’ll be making an announcement shortly about a power purchasing agreement which is for many years,” he said.
“We’re very happy.”
The planned $1.53 billion interconnector is now being considered by electricity authorities with proponent ElectraNet aiming to have it up and running by 2022.
The transmission company estimates it will cut $66 a year from SA residential customers’ bills.
The State Government, which backs the project, says benefits will be even broader.
“Not only will the nation-building interconnector deliver cheaper electricity to SA households but it will attract new investment in renewable energy projects that will create good jobs along its 900km route,” Energy and Mining Minister Dan van Holst Pellekaan said.
“The 900MW SA-NSW interconnector will be a freeway for cheaper, cleaner electricity whilst improving reliability of supply in both states by closing the loop on SA’s connection to the national grid.”
Four huge solar farms — three in SA and one in NSW — are planned on the route of the line which stretches from Robertstown in SA’s Mid North and Wagga Wagga in NSW.
ElectraNet chief executive Steve Masters said the route passed through areas designated by the Australian Energy Market Operator as renewable energy zones.
“Future development of renewable energy projects in the Mid-North of our state is largely dependent upon having additional interconnection,” he said.
“The proposed pathway for Project EnergyConnect (the SA-NSW interconnector) has been optimised to align with those renewable energy resources.
“What is clear from the transitioning Australian energy market is that we can’t afford to be ‘just in time’ with transmission.”
Assessment by the Australian Energy Regulator is being fast-tracked by about six months because two steps — whether it is the best solution and a revenue framework — are being conducted concurrently rather than sequentially.
If the project passes those two steps and the ElectraNet board backs the investment, the AER would then revisit its determination on how much revenue ElectraNet can earn up to 2023.
At this stage, only one submission disputing the investment has been received and is being assessed.
The submission, by the SA Council on Social Service, has questioned whether the project might increase prices for consumers rather than lower them.
The AER on Wednesday sought further information on the dispute and said it would make a decision by June.
Increased solar and storage would improve the reliability of the network.
A report this week by the AER found that a spike in spot wholesale prices on March 1 when temperatures in Adelaide and Melbourne exceeded 38C was due to limited availability of wind.
Prices spiked briefly to as much as $12,635/MWh - compared to 2018 averages of just over $90/MWh in SA - because of the shortfall.
Only 390MW of the 2400MW of installed windpower capacity was available across SA and Victoria.
The State Government is seeking to expedite the interconnector by:
EARLY commencement of detailed line route and site selection works.
COORDINATING state and federal planning approvals.
EARLY commencement of environmental and social studies.
INITIATING a community engagement strategy including landowner consultation about easements.
Solar River said while not fundamental to its project, the interconnector would be “icing on the cake for us”.
“We’re very supportive of the interconnector and what it will do for SA,” Mr May said.
Solar River had written offers on financing from a couple of the world’s biggest banks and was bringing in equity partners with a target of starting work in the September quarter, he said.
The power purchase agreement would cover 75 per cent of output, up from an earlier target of 60 per cent.
Robertstown Solar, proposed by Energy Projects Solar, is expected to go before the State Commission Assessment Panel within weeks.
The project was initially formulated to be competitive without the NSW link.
“The interconnector is a bonus for us,” EPS director Steve McCall said.
“It allows that additional export of energy to NSW.”
Timing would favour SA’s Mid North where solar would be generating while Sydney hits an early evening demand peak.
The third SA solar farm, Riverland Solar and Battery, is planned by the Lyon Group with the backing of Japanese energy giant Jera.
A spokesman said the integration of battery storage with solar generation on its and other large generation projects would help ensure future transmission construction could be smaller and cheaper rather than more “gold-plating” of the network.
Lyon has recently hit milestones on its Cape York project and now will turn greater focus to the Riverland.
THE PROJECTS
Solar River Project
Company: Solar River
Location: 30km southwest of Robertstown substation
Size: Stage 1 is a 200MW solar PV (photovoltaic) array with a 120MWh battery. Stage 2 is an additional 200MW solar PV system with 150MWh battery.
Cost: $450 million
Jobs: 350 construction phase; 45 operational
Robertstown Solar
Company: Energy Projects Solar (EPS) Pty Ltd
Location: 5km northeast of Robertstown, adjoining substation
Size: 500MW solar PV system with a 250MW/1000MWh battery system
Cost: $1.17 billion
Jobs: 275 construction jobs; 15 operational jobs.
Riverland Solar and Battery Project
Company: Lyon Group
Location:About
8km east of
Morgan
Size: 253MW solar PV system with an 80MW/320MWh battery
Cost: In excess of $500 million
Jobs: 270 construction jobs; the number of operational jobs yet to be announced
Yarrabee Solar Project
Company: Reach Solar Energy, which developed the Bungala solar project near Port Augusta
Location: Yarrabee Park, Narrandera, NSW
Size: 900MW solar PV (largest in NSW) with 35MW/70MWh battery
Cost: $957 million
Jobs: 450 construction; 15-25 operational
Approved by NSW Government in December 2018
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