One of Australia’s largest solar projects is to be built in NSW after the federal government awarded AGL Energy and photovoltaic manufacturer First Solar a $130 million grant.
The $450 million project will generate enough electricity to power 30,000 homes when built by the end of 2015 across two sites in Broken Hill and Nyngan.
AGL Energy and First Solar were awarded the $130 million grant under the federal government’s solar flagships program which supports the construction of large-scale solar power stations connected to the grid.
Energy Minister Martin Ferguson reopened first-round bidding in February after the consortium behind the initial winner – the Moree Solar Farm – proposed major changes to its project and failed to meet a December deadline to secure a power purchasing agreement.
Mr Ferguson on Saturday said the 159 megawatt project in Broken Hill and Nyngan represented excellent value for money and would ensure the introduction of industrial-scale solar power to Australian market.
“At the end of the day it all comes down to cost and if large scale solar is going to succeed in Australia it has to be cost competitive,” Mr Ferguson said in a statement.
The project is expected to create 150 jobs in Broken Hill and up to 300 in Nyngan during construction.
The energy minister said a rigorous assessment process by the independent Solar Flagships Council found the AGL-First Solar bid had the highest level of merit overall “representing value-for-money, low risk and high commercial viability”.
But he noted all short-listed applicants, including the Moree Solar Farm, TRUenergy and Infigen-Suntech bids, were of “high merit” and would be referred to the new Australian Renewable Energy Agency for future funding consideration.
