The Palmer wind farm in South Australia has taken another step forward after developer Tilt Renewables inked a power purchase agreement (PPA) with AGL.
The 15-year PPA will see 45 per cent of the output from Palmer, which has a generation capacity of up to 288 megawatts, sold to AGL at a fixed price.
Tilt Renewables chief executive officer Anthony Fowler said the PPA demonstrated the appetite for renewable energy.
“We are currently working through secondary approvals and finalising construction contracts,” he said. “A final investment decision on the project is expected in the coming months targeting commercial operation by December 2028.”
Fowler said that once constructed, Palmer has the capacity to power around 142,000 South Australian homes per year.
“The project will facilitate more than 200 new jobs in construction and five permanent jobs for the local community as well as over $7 million in community benefit funding over the life of the project.”
AGL chief commercial officer David Moretto said renewable energy PPAs provide “important” portfolio diversification for the company.
“AGL operates a diverse portfolio of assets to help meet the needs of our customers,” he said.
“This renewable energy PPA will … support the decarbonisation of the company’s electricity supply and can help AGL support its customers to decarbonise by increasing the renewable energy linked supply within our portfolio.”
South Australia has proven itself as a renewable energy forerunner, increasing net electricity generation from green sources from 1 per cent to 74 per cent in 16 years.
The Australian Energy Market Operator expects the state’s generation to be made up of 85 per cent renewable energy in 2025/26, with SA on-track to reach 100 per cent net renewables by 2027.
This commitment to renewable energy has seen the state attract more than $6 billion of investment in green energy projects, with more than $20 billion in the pipeline.
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