Engie reaches financial close on 250MW solar farm in first Victoria project since Hazelwood closure

Five years after winning its first permit approval, the Goorambat East solar farm in northern Victoria is finally moving towards construction with owner Engie reaching financial close on the project. 

Goorambat East is a 250 megawatt (MW) solar farm that will be built between the towns of Goorambat and Benalla. It got local planning approval in 2019 when it was still owned by French renewables developer Neoen, and a grid connection in 2021 — although that was delayed until 2023 after an amendment had to be made.

Another French company Engie stepped in last year in December to buy the project, and initial construction has already started. It is the company’s first solar or wind energy generation project in Victoria since the closure of the Hazelwood coal fired power generator in 2017.

Engie built and commissioned the Hazelwood 150MW/ 150MWh battery energy storage project at the former coal plant site a little over a year ago.

“Engie reaching financial close on the Goorambat East Solar Farm is a major step in progressing our renewable energy development pipeline,” says Engie Australia managing director of renewables Laura Caspari.

“Construction and commissioning of the 250 MW solar farm is expected to be finished in 2026. Once completed, at its maximum capacity, the solar farm could generate enough electricity to power the equivalent of 105,000 average Victorian homes.”

Engie has agreements with five landowners whose properties will host the solar farm, while engineering, procurement and construction contracts have been signed with Bouygues Construction Australia and Equans Solar & Storage.

The project will create 250 jobs during construction and deliver a community benefit fund of $75,000 per year for the life of the project, and up to $1,000 in annual electricity rebates to neighbours. 

Engie began rolling out the rebates from May to people who live near new renewables projects but who aren’t direct neighbours, and are customers of Engie’s electricity retail arm. 

Which properties fall into the wider group of neighbours depends on how much they’re affected by the new energy project in their area. For example, wind turbines will have a much wider range of visually affected neighbours than a solar farm.

The Goorambat East Solar Farm is located about 500 meters east of the town of Goorambat, and will connect to the newly built Goorambat East terminal station and AusNet’s existing single circuit 220kV transmission line.

Victoria has recently moved to speed up planning approvals for renewable energy projects, with a fast tracked process that aims to get a decision to developers within four months of their application. 

The new system, which designates all renewables proposals as state significant projects, ensures objections that have been resolved or dealt with don’t get stuck in the Victorian Civil and Administrative Tribunal (VCAT) during the final “notice of decision’ stage, which can add two years to a project’s timeline.

More than one in five applications have ended up in VCAT since 2015.