CEFC backs half cut solar cells in new drive to slash cost of PV

A 200MW solar farm being built in Queensland’s Western Downs region by Spanish developer X-Elio has reached financial close, helped over the line by an investment from the federal government’s green bank.

The Clean Energy Finance Corporation said on Thursday that it had made a $37 million commitment to X-Elio’s Blue Grass solar farm in Columboola, as a further demonstration of the critical role that solar continues to play in Australia’s transition to net-zero emissions.

The CEFC invested in the project, which will be built 20km west of Chinchilla in Queensland’s Darling Downs Renewable Energy Zone, as part of a syndicate of lenders including ING and Sumitomo Mitsui Banking Corporation (SMBC).

The CEFC’s contribution follows the federal government’s recent commitment to fast-track the arrival of ultra low-cost solar, announced as a key plank of its Low Emissions Technology Statement (LETS), unveiled late last year.

To achieve this, the government has joined forces with ARENA to work towards a “30 30 30” target, to improve solar efficiency to 30 per cent and reduce the cost of solar to 30 cents a watt installed (utility-scale) by 2030.

CEFC chief Ian Learmonth said on Thursday that the green bank’s 32nd solar farm investment was about using its capital and experise to support the ongoing evolution of the solar sector.

In particular, the investment would back the Blue Grass project’s use of “the latest technology” being deployed in large-scale solar farms, including bifacial solar panels with half cut solar cells.

Half-cut cell modules have solar cells that are – as the name suggests – cut in half, which results in traditional 60- and 72-cell panels having 120 and 144 half-cut cells, respectively.

The effect of this is that the solar cells’ current is halved, thus lowering resistive losses and boosting output. Smaller cells are also said to be less prone to cracking and to function better in shade conditions than standard solar panels.

“This technology can improve the performance and durability of the cell and as it becomes adopted more widely will improve efficiency and performance in power generation – key to Australia’s aim to achieve ultra low cost solar under the 30 30 30 target,” a CEFC spokesperson told RenewEconomy.

For X-Elio, which is co-owned by US investment firms Brookfield and KKR, financial close of Blue Grass comes more than a year after the project secured an offtake deal with US software company Salesforce.

That deal, hailed at the time as a “landmark” virtual PPA, or VPPA, committed Salesforce to purchase 25 per cent of the Blue Grass output, contributing to its commitment to reach 100 percent renewables energy by 2022.

“We’re thrilled to have achieved financial close for the Blue Grass Solar Farm, our largest solar project in Australia and one that strengthens our position in the domestic renewables market where we continue to pursue new growth opportunities,” said X-Elio country manager in Australia,
Belinda Fan.

“X-Elio is a global business with a local mindset, and we are committed to enhancing
economic and social outcomes in the local communities and regions where we operate,” Fan said.

“Blue Grass Solar Farm will include the latest technology that this innovative sector can deliver and will truly be a solar farm for the 21st century,” added Learmonth.

“Since our earliest investments, the CEFC has been instrumental to the development of
renewable energy capacity, which is pivotal to cutting emissions across our economy.

“We’ve met the financial challenge of backing early developments, while delivering substantial
investment and jobs to regional Australia.

“We have also stood by the industry during challenging economic times such as Covid-19, while building market confidence and attracting private sector capital.”

X-Elio says the Blue Grass solar farm is expected to be completed in 2022, and to create an estimated 400 regional jobs during the course of construction.