Emu Downs Solar Farm
APA Group (ASX:APA), Australia’s largest gas infrastructure business, today announced that it has entered into a 12-year power purchase agreement with Western Australian energy provider, Synergy. The agreement is for Synergy to purchase both the energy and the Large-scale Renewable Generation Certificates (“LGCs”) from the 20MW Emu Downs Solar Farm for 12 years from January 2018.
The 20MW solar project will share the transmission connection and facilities with APA’s existing 80MW Emu Downs Wind Farm, which was acquired in June 2011, along with long-term energy and LGC offtake contracts with Synergy.
APA announced in September that the project had been selected to receive funding of $5.5 million from the Australian Renewable Energy Agency (“ARENA”) as part of its Large Scale Solar funding program. With the required commercial agreements now in place, construction of the approximately $50 million project is expected to commence in January 2017.
APA Group Managing Director, Mr Mick McCormack, said, “It is pleasing to be able to announce this project, which is the type of energy infrastructure asset that APA will continue to invest in. The Emu Downs Solar Project forms part of the execution of our growth strategy in the renewables power generation asset class. The expansion of APA’s existing Emu Downs Wind Farm with the complimentary solar generation makes logical and financial sense both from a power generation profile, as well as sharing transmission connection infrastructure. Funding from ARENA also demonstrates the innovative and viable business model of the project that will help Australia transition to a cleaner energy future.”