Flow Power launches PPA with Kiamal Solar Farm
Energy retailer Flow Power has announced the second renewable power purchase agreement (PPA) to be launched to its wholesale client market, this time adding solar to its offering.
Flow Power originally announced its renewable corporate PPAs last year with the view to giving local businesses the opportunity to directly tap into an energy source that matches their consumption needs, lowers their energy bills and simultaneously benefits the environment and economy. The first PPA was launched in September, following a deal with Australia’s third-largest wind farm, Ararat Wind Farm.
The latest agreement will see Flow Power contract 50 MW of the output from Victoria’s largest solar project, the 200 MWac Kiamal Solar Farm near Ouyen, until 2030. Kiamal Solar Farm is the retailer’s first solar offering and first major contract with a renewable generator since Canadian pension trust OPTrust took an ownership stake in the company in February.
Flow Power Managing Director Matthew van der Linden said his company welcomes Kiamal Solar Farm into its portfolio and looks forward to bringing a new solar offering to local businesses, stating, “The market has proven that there is an appetite in Australia for renewable PPAs.
“Australian businesses need a solution that can offer cost-effective energy prices and long-term security,” he continued. “We hope to continue to deliver these solutions and are actively looking to grow our portfolio to include additional sources of renewable generation.
“This agreement secures our solar output for Victoria and we are also in final negotiations with projects for additional wind output in Victoria. NSW, South Australia and Queensland should follow soon after, completing our first phase of projects and seeing us out for the year.”
The 200 MWac Kiamal Solar Farm is the first Australian investment from Total Eren, a French developer and independent power producer of renewable energy, and has the potential to be sized up to 350 MWac. By 2022, Total Eren hopes to achieve 3 GW of installed capacity; it has already achieved 990 MW as of May 2018.
Made up of more than 700,000 photovoltaic panels over nearly 500 ha, the solar PV power plant received planning consent from the Mildura Rural City Council in September 2017, with construction commencing mid-year 2018. Total Eren expects to involve up to 200 people from nearby communities for construction works that will span nearly 12 months.
“We have been working with Flow Power now for more than a year looking to create the most efficient way of structuring such an innovative solution for corporates,” said Michael Vawser, Regional Director of Total Eren. “With the addition of the sophisticated investor OPTrust into the team at Flow Power, the deal received the boost it needed to get to execution and we are proud to be part of a new wave of power purchase agreements.”
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