Progress continues on the largest solar project under construction in Western Australia with the completion and execution of the detailed transaction documentation for the Partnership Agreement with co-equity investors Indigenous Business Australia (IBA) and Perth Noongar Foundation (PNF).
The Design and Construct Contract of Carnegie Clean Energy’s 10MW Northam Solar Farm with the Energy Made Clean and Lendlease Joint Venture has also now been executed.
The Northam Solar project has a capital cost of approximately $17 million, which includes Carnegie’s development fee.
Significant progress has already been made with initial engineering works and long lead items ordered. The project is on track to be complete in the second half of 2018 when it will begin selling power into the Western Australian grid.
It is the largest solar project currently under construction in Western Australia and the first ever to be developed on a “merchant” basis where the power is not contracted under a long-term offtake agreement. Carnegie retains a 50 per cent interest in the solar farm.
The Northam Solar Farm has been developed as a template for future projects where Carnegie receives value from multiple revenue streams including:
- Electricity sales
- Renewable energy certificate sales
- Reserve capacity credit payments
- Project construction and operating and maintenance
- A project development fee
Carnegie’s Managing Director, Dr Michael Ottaviano, said, “This is an important step forward to formally move the project into the construction and delivery phase. We look forward to working with IBA, PNF and Lendlease on the delivery of this innovative project.”
Indigenous Business Australia’s Chief Executive Officer, Rajiv Viswanathan, said, “IBA is excited to see this partnership come to life, demonstrating how we can work alongside Indigenous organisations and the private sector to generate positive financial and social returns from new areas of the economy.”
Perth Noongar Foundation’s Chairman, Cedric Jacobs, said, “We are excited about the journey we are on together with Carnegie and IBA. We recognise the tremendous effort and engagement by all parties to date”.
