CEFC invests $160m to spark up renewables hub

A landmark $160 million investment has been announced to fast-track grid connection for the Southern Downs Renewable Energy Zone (REZ), home to the $2 billion MacIntyre wind project. The Clean Energy Finance Corporation commitment will unlock an additional 500 MW of new network hosting capacity, adding to the proposed 1000MW of renewable capacity to support the MacIntyre Wind Precinct. Powerlink will use the finance to build and operate 65 km of high voltage 330kV overhead transmission lines and two new switching stations in the southern portion of the Southern Downs REZ. The CEFC capital will enable Powerlink to future proof the REZ by developing it at scale and keeping connection costs down for the initial or foundation generators. It estimates that the project will create 400 jobs overall during construction of the wind farms and support a further 220 jobs in building the transmission connection. This is the first account between a Queensland Government-owned company and the CEFC. Queensland Energy Minister Mick de Brenni said the agreement demonstrated how working together could help the nation achieve energy independence. “Connecting the massive project to the national grid not only unlocks $2 billion worth of investment, it also boosts reliability of power across the three east Australian states, with clean Queensland-made energy,” he said. “It also presents another opportunity to build onshore capability and skill Queenslanders for renewable energy jobs of the future. “This model also connects cheaper renewable generation in a way that minimises costs and risks for Queensland businesses and households.” Powerlink chief executive Paul Simshauser said work on-ground had started this month to deliver infrastructure required to connect the MacIntyre Wind Precinct to the grid. "At more than one gigawatt, this is easily Powerlink’s largest connection project to date," he said. “Importantly, it will also deliver Queensland’s second REZ. We are committed to maximising renewable generation capacity at the lowest possible cost to Queenslanders. “The CEFC financing enabled unique contracting arrangements facilitating significant economies of scale.” CEFC chief executive officer Ian Learmonth described the initiative as an exciting demonstration of the transformative power of CEFC capital. "Drawing on our experience developing Australia’s large-scale renewable energy sector, the CEFC has created an investment structure that helps Powerlink bridge the financing gap for generators through an initial lower connection charge," he said. Mr Learmonth said accelerating the development of renewable energy zones was an important part of AEMO’s Integrated Systems Plan (ISP). "The ISP recognises that much of the NEM’s new renewable energy resources will be developed in these areas with good solar and wind resources, and potential for strong network connection as well as strong community support,” he said. The 1026MW MacIntyre project consists of two wind farms – the proposed 103MW Karara Wind Farm to be owned and operated by CleanCo Queensland, and the 923MW MacIntyre Wind Farm that will be owned and operated by ACCIONA Energy Australia.

CEFC invests $160m to spark up renewables hub

Industry Queensland

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