Agreement to build the Southern Hemisphere’s largest solar power station

The Federal Minister for Climate Change, Mark Butler, has announced that construction will soon begin on the largest solar power station in the Southern Hemisphere.

The announcement came after AGL Energy Limited (AGL) achieved financial close in respect to funding agreements with the Australian Renewable Energy Agency (ARENA) and the NSW Government, who provided $166.7 million and $64.9 million respectively. The total project cost is approximately $450 million.

“Australia has the highest average solar radiation per square metre of any continent in the world,” said Butler, “and we should take advantage of that natural asset.” 

The project will be built across two sites in Western NSW and will cover a combined area four times the size of the Sydney CBD. Totalling 155 MW of power, it will be 15 times larger than any other solar power station in Australia.

AGL has engaged First Solar to provide engineering, procurement and construction (EPC) services for the projects, using its advanced thin-film PV modules. The company will build a 102 MW solar plant at Nyngan and a 53 MW solar project at Broken Hill.

AGL Managing Director Michael Fraser noted that the plants will be the nation’s largest solar projects, “with the Nyngan plant also being the largest in the Southern Hemisphere.” On an annual basis, they will produce approximately 360,000 MWh of electricity, meeting the needs of over 50,000 average NSW homes.

Fraser said the projects are expected to create around 150 construction jobs in Broken Hill and 300 in Nyngan, as well as adding “nearly 2% to the gross regional product of each regional economy.” First Solar is actively engaged with local companies looking to become involved in the projects, with over 100 local contractors attending the recent subcontractor forums hosted in Dubbo, Nyngan and Cobar.

Construction of the Nyngan project is expected to commence in January 2014, with completion scheduled by mid-2015. Construction of the Broken Hill project is scheduled to begin in July 2014 and to be completed around November 2015. First Solar will operate and maintain both projects for AGL for five years after commercial operation starts.

Jack Curtis, First Solar’s Vice President of Business Development for Asia Pacific, said the projects will “demonstrate that utility-scale solar is a proven, bankable source of power generation in Australia today.” He said they are “of major significance for regional NSW and the Australian energy sector” and will “play an important part in the growing acceptance of utility-scale solar PV.”

The solar projects will also facilitate research supported by the federal government’s Education Investment Fund (EIF). AGL will collaborate with the University of Queensland and the University of New South Wales, as well as First Solar, to implement original research which will support the future development of solar energy in Australia. The EIF will provide $40.7 million in funding for the research.

Butler said the federal government’s strategic investment is part of its broader efforts to stimulate investment in renewable energy in Australia.