The Australian Renewable Energy Agency (ARENA) has received 77 eligible expressions of interest (EOIs) for its $100 million large-scale solar PV round, while the Clean Energy Finance Corporation (CEFC) received market interest from more than 40 domestic and international project developers interested in its $250 million lending program.
ARENA and CEFC teamed up in early September to provide $350 million in funding for between four and 10 new large-scale Australian solar farms. A number of applicants for the ARENA large-scale competitive round has also approached the CEFC for debt funding through its complementary $250 million large-scale solar financing program.
ARENA Chief Executive Ivor Frischknecht said its round, which was designed to bring down costs through the deployment of 200 MW of large-scale solar PV, had generated strong interest from the sector.
“The level of interest in the ARENA large-scale solar PV competitive round exceeded our expectations. It sends a strong signal the sector is serious about deploying large-scale solar and making the most of Australia’s enviable natural solar advantage,” Mr Frischknecht said.
ARENA received EOIs for projects in Queensland, New South Wales, Victoria, South Australia and Western Australia, totalling more than $5.5 billion.
“The projects represent a total capacity of 2.8 GW, which is more than 10 times Australia’s existing large-scale capacity,” Mr Frischknecht added.
He said the funding round is on track to significantly boost large-scale deployment across Australia.
Meanwhile, CEFC received interest from developers looking to develop projects ranging from 15 MW to 200 MW. By state, the proposed projects submitted for consideration included:
- Queensland – largest number of projects at a combined 980 MW
- New South Wales – 620 MW
- South Australia – 220 MW
- Victoria – 135 MW
- Western Australia – 100 MW.
CEFC Chief Executive Oliver Yates said if all the proposed projects – totalling more than 2 GW – were developed, Australia would see a tenfold increase in its large-scale solar capacity.
“Between ARENA and the CEFC, we are now examining these proposals and working with the individual proponents to determine whether CEFC and/or ARENA finance is suitable,” Mr Yates said.
“As with any commercial transaction, we would not expect all projects to proceed to conclusion. However, we are very encouraged by the number and quality of proposals.”
ARENA expects to select and invite highest merit applications to proceed to the full application stage by 16 December 2015. The due date for full applications is 15 June 2016 to allow sufficient time to advance approvals, financing and other key contractual arrangements.
Federal Environment Minister Greg Hunt said CEFC and ARENA’s funding rounds will enable the large-scale solar sector to generate enough electricity to power around 12,000 average Australian homes.
