Solar Working Together With Coal in Australia

  • Edify Energy and coal generation company Delta Electricity has signed a 150MW PPA in Australia this week.
  • This PPA will position Delta Electricity well for any potential future forms of emissions compliance.
  • The 150Mw of renewable energy will come from the 275 Mw Darlington Point Solar Farm Project.
  • The contract serves as a great example of solar working together with coal.

Australian renewable energy independent power producer Edify Energy, and coal generation company Delta Electricity signed a 150MW solar power purchase agreement (PPA) for the supply of energy and large-scale generation certificates from the 275MW Darlington Point Solar Farm.

The 275Mw Darlington Point Solar Farm is being developed by leading Australian renewable energy company Edify Energy and is expected to reach financial close and commence construction shortly, with commercial operations slated for early 2020.

Located near Griffith in western NSW, the Darlington Point Solar Farm will generate 685,000 MWh of renewable energy annually, enough to power approximately 130,000 homes and create up to 400 peak construction jobs for the local community.

With Delta Electricity as owner of the Vales Point Power Station, this contract serves as an example of solar working together with coal in NSW and demonstrates the growing place of renewable energy.

Power from the solar farm will be used to support Delta Electricity’s expanding retail portfolio with acquired LGCs being surrendered to help meet its Renewable Energy Target (RET) liability. This PPA will also position Delta Electricity well for any potential future forms of emissions compliance.

The agreement ends in 2030, coinciding with both the end of the RET period as well as the current expected operating life for Vales Point Power Station. Combining with solar power therefore represents an enduring operating regime for the balance of the power station’s life. It also places variable solar power in the hands of a party that is directly able to firm it with a physical asset.

Read: South Africa – Coal and Renewable’s, No Reason Why They Can’t be Friends in Transition

Edify Energy, Chief Executive, John Cole said “This PPA is a cornerstone document to facilitate the financing of one of the largest solar farms in the country. With traditional and new sources of power now working together, it is time to end the climate debate in Australia. A focus on the economic, not just the environmental benefits, that renewable energy brings will accelerate the transition of the energy sector.”

Delta Electricity’s Company Secretary, Steve Gurney, said “Delta recognises that both dispatchable power and low emission technologies have a role to play in supporting an affordable, reliable and sustainable national electricity market. This PPA is a model for how both traditional generation and renewables can work together to ensure reliable supply to customers while providing a significant contribution to state and federal government renewable energy targets.”

Author: Bryan Groenendaal

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