Australian company Tilt Renewables has completed turbine installation and delivered first power at the 336MW Dundonnell wind farm in the state of Victoria, but full operations have been delayed due to concerns raised by the Australian Electricity Market Operator (AEMO).
Tilt said that 113MW are now operational and final commissioning of the remaining Vestas turbines is ongoing.
To allow the wind farm to connect to the Victorian 500kV network Tilt has been following an agreed commissioning plan to confirm compliance with the Generator Performance Standards, which were negotiated with the AEMO prior to reaching financial close in 2018.
Tilt said it continues to work with AEMO and Vestas to mitigate the market operator’s “unanticipated concerns” and allow the wind farm to generate at full capacity.
“At this time, whilst discussions continue with AEMO, Tilt considers there is insufficient clarity of the process required by AEMO for Tilt to forecast the length of the delay to production ramp up,” the developer said.
The company did not elaborate on the concerns raised by AEMO.
Tilt chief executive Deion Campbell said: “To deliver 80 of the largest wind turbines ever installed in the southern hemisphere safely and on time is a superb result and a credit to all involved in the planning and execution of the project.
“The delay to reaching full production at (Dundonnell) is unfortunate given Tilt has followed the prescribed connection process, however, it should be remembered that this is a long term infrastructure asset which will eventually move to full production and produce strong cashflows for more than 30 years.”
The company said that given the current restriction on production, Tilt now estimates that group earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF) for the 2021 financial year will fall below the guidance range provided to the market in May.
It said: “The remaining uncertainty with production ramp up at (Dundonnell) means it is difficult to accurately forecast the EBITDAF contribution for the full year.”
Tilt expects FY21 EBITDAF to be in the range of A$65m (€40m) to A$80m.