Genex Power’s 50MW Jemalong solar farm has been “energised”, a key milestone that will enable it to begin production in coming days.
The Jemalong solar project, which has been constructed near Forbes in central New South Wales, began construction just nine months ago, when the company said that the project would deliver a ‘step change’ to the company’s revenues
The project will join the 50MW Kidston stage 1 solar project in Queensland, as the second of Genex’s operational solar projects, and once fully operational in early 2021, will effectively double the company’s revenues.
Genex acquired the development rights to the Jemalong solar farm from Vast Solar, which had built a 1MW demonstration solar thermal plant on a neighbouring site.
The ASX-listed Genex has large ambitions for building a portfolio of clean energy projects, including a flagship 250MW pumped hydro energy storage project at the Kidston site, and a potential 270MW expansion of the solar farm.
The company recently announced that it had secured a partnership with Japanese utility J-Power to progress the development of a 150MW wind farm, also set to become part of the Kidston energy hub.
Genex CEO James Harding said that energisation is a key milestone for Genex, and a particularly significant achievement given disruptions that had impacted the energy sector throughout 2020.
The company said that it had largely been able to avoid Covid-19 related disruptions, and had implemented a number of protections for both on-site and off-site staff.
“Energisation of the Jemalong Solar Project is a significant milestone for the Company and further demonstrates our ability to deliver on large-scale projects,” Harding said. “The Project, once fully operational, is capable of producing up to 128,700MWh of energy per annum, generating enough electricity to power more than 23,000 Australian homes.”
“I would like to take this opportunity to thank the project delivery team, especially our nominated EPC Contractor Beon, who have displayed outstanding professionalism and determination to develop the project during these uncertain times. Despite the effects of the COVID-19 pandemic, the project has experienced no significant delays and is being delivered within budget.”
Genex said that the Jemalong solar farm would operate on a merchant basis, selling electricity directly into the National Electricity Market and would likewise benefit from the sale of renewable energy certificates.
“The project will operate initially on a merchant basis, taking advantage of the relatively strong daytime electricity prices in New South Wales with the average electricity price in November 2020 sitting around $62/MWh. Project revenues will also be collected from the sale of Large-Scale Generation Certificates which attracted an average sale price of approximately $30 each in November,” Harding added.
Genex remains just one of a handful of pure-play clean energy companies listed on the ASX. Wind power developers Infigen Energy and Windlab were both delisted during 2020 following their respective acquisitions by third parties.
ASX listed Tilt Renewables flagged on Monday that it may also become the subject of its own takeover offer, after majority shareholder Infratil announced that it would commence a review of its shareholding following interest from potential buyers.