A 470 megawatt (MW) wind project in Western Australia has become the latest to reach financial close and give the go-ahead for construction, the ninth to do so since the wind investment drought was ended late last year, and the biggest in Australia in more than two years.
The Parron Maam Marang project is owned by Atmos Renewables, and is being built in the wind-rich wheatbelt region about 200 kms north of Perth, and is benefiting from a power purchase deal with the state government owned retailer Synergy.
The announcement on reaching FiD was revealed by W.A. energy minister Amber-Jade Sanderson on Friday. Atmos was not available for comment as it was said to be preparing for a bigger and broader announcement.
“Atmos will retain an ownership interest in Parron Maam Marang and operate the wind farm once complete, consistent with its strategy of building a long-term Australian renewable energy business through disciplined development and responsible asset ownership,” a spokesperson said in a statement.
The FiD was widely expected given that turbine maker Vestas had announced the previous day that it had won a contract for the project, and last week GenusPlus Group said it had been awarded a $130 million contract to build a substation at the project.
Still, it is a major development for the industry struggling with rising costs and the lack of private buyers, and highlights Western Australia as one of the key hot-spots for renewable investment in Australia.
Parron Maam is one of a number of wind projects contracted and fast-tracked by the state government as it races to ensure it has enough spare capacity in place to allow it to close the last of its coal fired power generators by the end of the decade, as planned.
Three other wind projects have also begun construction in W.A.’s main grid – Waddi, Narrogin and Kondinin – and construction is also occurring at previously announced projects at King Rocks and the Warradarge wind farm extension. The 130 MW Nullagine wind project is also being built in the Pilbara by Fortescue to help power its iron ore mines.
In South Australia, the Palmer and Carmody’s Hill wind farms have also reached FiD and begun construction in the last 10 months, as has the now state-owned Delburn wind project in Victoria, and most recently the 408 MW Gawara Baya wind and battery project in Queensland.
The burst of activity is still not enough to meet the federal government’s target of 82 per cent renewables by 2030, but at least breaks the investment drought that had hit the country.
NSW, however, still has just one wind farm under construction, despite the impending closure of its biggest coal fired power generator, Eraring, and the owner of Eraring, Origin Energy, has just announced it is walking away from a major wind project in New England because of rising costs.
To reach its target, the federal government will be wanting to see FiD and construction starts on much bigger projects, such as the newly approved Bungaban wind project in Queensland that will help power Rio Tinto’s smelters, and a group of gigawatt scale projects in NSW such as Origin’s Yanco Delta and Tilt Renewables’ Liverpool Plains.
For now, W.A. is accounting for more than half of wind farm financial closes and construction starts.
The FiD on Parron Maam comes just a few days after another wind project in W.A., Foresight’s Kondonin wind farm, also reached FiD and signalled the start of construction. Both projects were supported by PPAs with Synergy and underwriting deals with the federal government’s Capacity Investment Scheme.
“This milestone shows how government and industry can work together to deliver the large-scale energy infrastructure needed to power W.A. households and businesses,” Sanderson said in a statement.
Update: Atmos Renewables also announced that it has reached financial close on another CIS-supported project, the 400 MW, 1,600 MWh Teebar BESS in Queensland, which will be built using Valo technology and will be built by Enerven.
“A big thank you to everyone who has contributed to getting these projects to this point, and to the exceptional Atmos team which has worked tirelessly to achieve this huge milestone. We now look forward to progressing both projects safely through construction,” the company said in a LinkedIn post.
In a later statement, Atmos CEO Nigel Baker said the company had brought nearly 1 GW of new capacity to market, via the CIS, including the previously announced Merredin battery in W.A.
“The CIS provides important long-term revenue support, but an award is only one step. Projects still need to secure financing, grid access, wider commercial arrangements and a credible delivery pathway,” Baker said.
“Teebar BESS and Parron Maam Marang Farm meet market needs for the firming and generation capacity required in Australia as electricity demand grows and ageing generation retires.” He said Atmos will retain ownership of both projects through construction and operate both once complete.
To join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, click here to subscribe to our free daily newsletter.
