NT seeks another 100MW of large scale solar, even as first projects sit idle

Jacana, the state owned energy retailer in the Northern Territory, says it is seeking to contract another 100MW of large scale in the Darwin Katherine grid, even though the territory’s first solar farms built up to three years ago are still not producing.

Jacana has announced an EOI (expressions of interest) for solar farms to be built at key points close to Darwin. It is seeking several solar installations of around 30-35MW each, but they will have to come with their own battery storage to meet the strict dispatch rules in the local grid.

Four large scale solar farms ranging from 10MW to 25MW have been built in the Northern Territory, but have largely sat idle because they cannot meet the strict dispatch rules introduced by Power and Water Corporation, which effectively require a big battery to be installed.

One of the solar farms, Katherine, which has a small battery, has started producing at small quantities and is expected to ramp up during the year, but the others are still negotiating with PWC and other authorities. The government recently brought in a consultant to advise on the issue.

Three of these solar farms – owned by Italian energy giant ENI – have off-take contracts with Jacana, which is making clear that battery storage will be required for the new solar farms when they are built.

The EOI to be released later this month, is expected to detail the recommended battery size, but it is expected that the battery requirements will roughly be equal to around one third of the solar capacity.

Jacana CEO Louisa Kinnear told RenewEconomy on Tuesday that the new solar target will meet both customer demand, and help the territory move towards its 50 per cent renewable energy targets.

“Our customers want greener energy,” Kinnear said, adding that it will boost the renewable share in the state by around 15 per cent when they are installed and generating by around 2027.

Kinnear said Jacana’s plans are not impacted by either the newly announced 300MW solar project that is to be build for the new Middle Arm precinct, nor the massive Sun Cable project to the south, which could be sized at up to 20GW if it signs up Singapore as a client, but might aim for smaller stages if it can find new demand centres in the territory.

“Sun Cable is not part of own calculations,” Kinnear said.

The Darwin grid is relatively small, with peak demand of up to 260MW, and a significant amounts of rooftop solar. A new Darwin battery is being built that will allow Territory Generation to operate with less gas turbines spinning in reserve, but may do little to absorb much more solar.

The NT government says the solar farm EOI is asking proponents to consider connecting at specific locations within the greater Darwin area.

“The EOI is the first step in a comprehensive process to procure and safely connect and commission more large-scale renewable energy closer to Darwin,” the government says.

The EOI will open on Tuesday 22 August 2023 with submissions required by 26 September 2023. A webinar for interested parties will be held next week.