Genex inks deal to connect solar + pumped hydro project to Queensland grid

The company behind a huge solar and pumped hydro storage development in Queensland has signed an agreement with network operator Ergon Energy to connect the first 50MW of the project’s PV array to the local grid.

NSW company Genex Power, whose Kidston Pumped Storage Hydropower Project is being developed at a disused gold mine in north Queensland, says it has negotiated two contracts with Ergon, governing substation upgrade works and conditions for the transfer 50MW of electricity from Kidston into Ergon’s network on an ongoing basis for a period of 25 years.

The deal meant that once the first phase of the solar farm was complete, Genex would be able to connect to Ergon’s distribution network and export electricity from the project directly into the NEM.

Genex said its existing infrastructure – a radial 132kV line from Townsville to Kidston – had sufficient capacity to accommodate the generation from the solar project without the need for augmentation.

In a statement on Tuesday, the company said the signing of a grid connection deal meant it could now fast track development, with a focus on project funding arrangements, finalising EPC Contractor arrangements and securing a power purchase agreement.

“(Genex) is now squarely focussed on narrowing down its financing options with the appointment of a project finance bank expected in the short term as well as progressing discussions with a number of equity partners to fund all or part of the project construction equity,” managing director Michael Addison said.

Recently, new designs for the pumped hydro part of the project suggested peak generation capacity could achieve a maximum of 450MW over a 5-6 hour period, up from an initial estimate of 330MW.

“The Company remains on track to commence construction later this year and is targeting first cash flow within 12 months of construction commencing,” Addison said.