Very very cheap wind power coming into the ACT grid

wind turbines

SIMON Corbell says the first successful project in the ACT Government’s second large-scale wind reverse-auction has achieved Australia’s lowest known contract price for renewables at $77 per megawatt hour while at the same time delivering more than $10 million dollars in local economic benefits to the ACT.

(By way of comparison the argument over electricity prices earlier this year was quoting coal power at $79 with wind starting around $150)

“The Neoen Hornsdale project has been awarded a feed-in tariff for 100 Megawatts of the available 200 Megawatts in the ACT’s second wind auction,” Simon said.

Developed by French renewable energy company Neoen International SAS in partnership with Australian company Megawatt Capital Investments, it will power 56,000 Canberra homes and provide 13% of the ACT’s projected electricity demand in 2020.

“This new record low price from Neoen’s Hornsdale project is the latest nation-leading result to be achieved through our innovative large-scale reverse-auction process.

“The local investment benefits secured through this deal will strengthen the ACT’s position as an internationally recognised centre for renewable energy innovation and investment. It will help establish a new energy innovation precinct to be established around City West and New Acton.”

As well as committing to operate the Hornsdale facility from their Asia Pacific Asset Management and Operations Headquarters at the CIT Bruce Campus, Neoen and Megawatt Capital will provide a $10.8 million investment package for Canberra, including:

  • A $1 million renewable energy and battery storage training fund to build the ACT’s capacity to provide world-class trades training services to these rapidly developing industries;
  • a $6.5 million research and innovation and international outreach fund to provide support to local and inbound small and medium enterprises through the development of world-leading applied research facilities, programs and services; and
  • a $2.7 million energy innovation precinct fund to provide practical assistance, such as grants and accommodation support for innovative local, national and international businesses seeking to establish in Canberra.

This investment package will directly support the government’s recently launched Next Generation Renewables strategy.

“This will see a number of start-ups and other industry participants moving to the ACT, providing further investment to our local economy and creating jobs,” Mr Corbell said.

Neoen has also committed to spending at least $800,000 on local contractors through the construction phase of the project.

[Photo by TLPOSCHARSKY, attribution licence]

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