Neoen has signed a power purchase agreement for a 352MW portion of its Western Downs Green Power Hub photovoltaic project.
The agreement is with CleanCo Queensland, a utility owned by the state, and will contribute over 30% of the energy required for the company to meet its target of 1GW of new renewable generation by 2025.
Construction of the project, located in Chinchilla in south-east Queensland, will start in July 2020.
The solar farm will begin commercial operation in the first quarter of 2022 and will feed electricity into the state’s transmission network.
The PPA will enable Neoen to build Western Downs, which will be between 460MW and 480MW in size when finished, making it the country’s biggest solar farm.
Neoen will be the long-term owner and operator of the project.
The 1080 gigawatt-hours of renewable electricity generated by Western Downs each year will “complement” CleanCo Queensland’s hydro generation.
The Western Downs PPA is CleanCo Queensland’s second renewable energy offtake agreement since it was set up in December 2018.
Neoen Australia managing director Louis de Sambucy said: “We are excited to work in partnership with CleanCo with whom we share the same long-term vision. The electricity produced by Western Downs solar farm will complement CleanCo’s hydro energy production and it will be our first project in Queensland.
“We are fully committed to delivering this landmark deal by making the most of the region’s excellent solar resources, the use of the latest technology and our experience in delivering solar farms on time and on budget.
“We look forward to Western Downs becoming a lighthouse project in achieving excellent regional economic and local community outcomes that will be needed in the aftermath of COVID-19’s impact on the economy. This will also help the Queensland government work towards its ambitious target of 50% renewable energy by 2030.”
CleanCo Queensland is focused on projects to “improve electricity affordability” that contribute to achieving Queensland’s 50% renewable energy target by 2030, as well as job creation in the state.
CleanCo Queensland inaugural chief executive Maia Schweizer said: “This an exciting initiative which is delivering a better future for Queensland. We’re delivering affordable, secure and clean energy, which is powering new jobs right across our state.”
Western Downs is expected to create up to 400 jobs for the local and south-west Queensland area.
The establishment of a Community Benefit Fund for Western Downs will provide opportunities for local community-building initiatives every year for the lifetime of the project.
Neoen said it is also working closely with the traditional indigenous owners, the Barunggam, to go “well beyond! current best practice for indigenous participation, targeting 10% of the project’s economic benefits, including employment, training and supply chain outcomes.