RCR Tomlinson Solar Farm Writedowns

Australian solar contracting company RCR Tomlinson has taken a $57m write down on the Daydream solar farm and the Hayman solar farm, which are owned by Edify Energy and to be installed in North Queensland.

RCR Tomlinson Solar Farm Writedown

We reported earlieir this year on the Hayman and Daydream solar farms and how First Solar will be handling the installation for Edify – at that time everything looked rosy but it appears that a couple of major factors have led to cost and time delays. Edify have cited “external” delays, bad weather, and local issues like poor ground quality.  Also being blamed are the increasingly stricter requirements being imposed by the Australian Energy Market Operator which are affecting solar farms Australia-wide. 

RCR Tomlinison Daydream solar farm in Collinsville, Queensland.
RCR Tomlinson -Daydream solar farm in Collinsville, Queensland. (source: thewest.com.au)

As of last year, RCR have over half a Gigawatt of large-scale solar projects in their order book and over a Gigawatt currently being developed or progressed under early contractor involvement processes, according RCR Managing Director & CEO, Dr Paul Dalgleish (who has since left RCR). As a result of the writedown RCR are now attempting to raise $100m from investors and have had to offer a significant discount on RCR shares on a one-for-1.65 basis at $1 each. This represents a ~65% discount on the stock’s last trade price ($2.80).

According to RenewEconomy, Tomlinson has written down $57 million on the $315 million contract values for both the 150MW Daydream and the 50MW Hayman solar farms owned by Edify Energy. They’re both located in North Queensland and both nearing completion.

A statement to shareholders noted that: 

“These project-specific issues required the Company to continuously revise its execution methodologies to mitigate delays, leading to increases in subcontractor costs (both people and plant) and logistics cost overruns.

“As a result of these cost overruns that arose over the life of the Project, RCR has realised cumulative write- downs of $57 million from the tendered margin on the Project.”

Some bad news for solar farms in Australia but we have no doubt that these projects will end up completed and can start making their investments back. We’ll be watching closely how the AEMO’s ongoing changes to legislation affects the many other solar farms currently in various stages of completion/operation. 

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Darling Downs Solar Update | Jobs, Farms & More

Darling Downs solar is helping the area by providing jobs to locals and kickstarting the economy – with one council already approving $6b worth of wind and solar projects. There’s now a ‘buzz’ around the Darling Downs and renewable energy – let’s take a look at what they have in the pipeline!

Darling Downs Solar 

Darling Downs Solar Farm
Darling Downs Solar Farm (source: Origin Energy)

“We’ve got $1.2 billion of that under construction now, and that’s the exciting thing, this isn’t just about approvals, this is about action to deliver renewable energies to this region,” Western Downs Regional Council mayor Paul McVeigh said in comments to the ABC

“And we know there are another three [solar farms] in the pipeline.”

In Warwick, the 154,000 megawatt-hour generating UQ / Warwick Solar Farm is to be installed on ‘good agricultural land’ has had to wage a battle against NIMBY detractors. Mayor Tracy Dobie defended her decision (she had the deciding vote to allow the farm DA):

“This region is about growth and development and we can sit here and go poor slowly or we can progress our region and the more development we can get in our region the more jobs,” Ms Dobie said.

“The more progress we can make, the better off we are.”

Mayor Dobie continued to discuss the project and what she sees the future of renewable energy in the Darling Downs as looking like:

“This is a turning point in our region to show we are moving forward, that we are looking to the future, and there is nothing more evident than that than renewable energy.

“There’s a buzz about the Darling Downs, this is a great place to be and great time to be here.”

Toowoomba Solar

There’s been an amazing amount of renewable energy movement in Toowoomba – with the billion dollar project at Bulli Creek approved by the Tooowoomba Council. This will be built by Solar Choice over a 10 year staggered period. 

Toowoomba mayor Paul Antonio spoke about the concerns some residents may have and why he’s happy to continue approving solar farms:

“I guess we have to be a bit cautious of the type of land we put it on, but in saying that, the land is restorable, its not going to be destroyed in any mining effort or anything like that, and in 20, 30, 40 years’ time that land will be back to full production.”

Have a look at the short video below from ABC Landline which was part of an article about using ‘good farmland’ for solar farms. 

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Susan River Solar Farm Construction Commences

The up-to 100MW and $175m Susan River Solar Farm located between Hervey Bay and Maryborough in Queensland is commencing construction this month after being granted DA in 2016.

Susan River Solar Farm

Susan River Solar Farm
Susan River Solar Farm Mockup (source: http://susanriversolarfarm.com.au/)

The Susan River Solar Farm was granted DA (development approval) by the Fraser Coast Regional Council in December 2016 and is now commencing its construction, with roadworks already underway to ensure the infrastructure is set up correctly before building commences. The project is being developed by one of Australia’s biggest renewable energy developers – ESCO Pacific Pty Ltd. They currently have nine solar farms in various stages of completion – with three under construction (The Ross River Solar Farm, Childers Solar Farm, and Susan River Solar Farms) and six with planning secured. These six are in Rollingstone, Dino, Horsham, Koberinga, Moura, and Finley.

With regards to solar employment at the Susan River Solar Farm, Esco chief executive Steve Rademaker said the project will create up to 300 jobs during its inception and five to ten full-time jobs after the plant’s construction is complete. He went on to explain why the Fraser Coast location was ideal for their solar farm:

“Choosing a location came down to the suitable size identification and proximity to the electrical grid, among other factors,” Mr Rademaker said.

“The Fraser Coast ticked all these boxes. It’s a good location to build a project like this.”

According to the Fraser Coast Chronicle, the project will occupy 176 hectares and will involve the installation of 350,000 PV solar panels. 

Fraser Coast infrastructure councillor Denis Chapman called it a “jewel in the crown” of the Fraser Coast. 

The project doesn’t have a PPA (Purchase Power Agreement) signed yet, which means the farm will sell its output on the spot market once launched (unless they sign one first!).

The utility scale renewable energy project is expected to finish completion next year. 

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Cubbie Solar Farm | Solar Power in Resources

Cubbie Solar Farm – Nasdaw listed company VivoPower said this Monday that its wholly owned Australia subsidiary, Aevitas, has been chosen to build the solar project at Cubbie Station in South West Queensland.

Cubbie Solar Farm

Cubbie Solar Farm
Cubbie Solar Farm (source: cubbie.com.au)

Cubbie Station, located in Dirranbandi in South West Queensland, is the largest irrigation property in the southern hemisphere and as such has very significant power and water requirements. Since January 2013, the Cubbie Ag property group is owned by CS Agriculture Pty Ltd. The major stakeholder of this company is Ruyi Australia Group, who manage Australian operations on behalf of Ruyi Group, a Chinese multinational company.  They’ve been spending this year working on getting a solar farm up which will be able to supply around 40% of the station’s power requirements during its peak season (April to September). 

Stage 1 of the project will involve the creation of  3.5MWDC Solar Farm Non-export generation – to do this ~9,800 solar panels will need to be mounted onto a fixed structure and wired through to the inverter. Aevitas Group Limited was awarded the EPC (Engineering design, Procurement and Construction) contract last week, as per a press release posted on the Nasdaq website

Cubbie Ag have a plan for the future as well – they are aiming to provide power to Dirranbandi and St George as the project grows and generates more renewable energy. According to One Step Off The Grid, their goal is to expand the solar farm to 7.2MW and also add battery storage to it.

Solar power in resources and commercial solar have both been growing in leaps and bounds (and often in conjunction) so it’s exciting to see more of these projects coming to fruition. Solar power for farms and business are popping up very frequently. 

The Cubbie Solar Farm is expected to commence construction in October and will be operable by the end of the year.

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Sunshine Coast Solar Farm saves $1.7m in Year 1

The Sunshine Coast Solar Farm has been live for a year, and, as the second largest solar farm in Queensland, is on track to deliver $22m in savings over the next 30 years. 

Sunshine Coast Solar Farm Savings

Sunshine Coast Solar Farm (Valdora)
Sunshine Coast Solar Farm (Valdora) (source: sunshinecoast.qld.gov.au)

Also known as the Valdora solar farm, the 15MW and $50m Sunshine Coast Solar Farm was opened last year, allowing the Sunshine Coast Council to be the first local governments in Australia to offset 100% of its energy usage from a renewable source. Sunshine Coast acting Mayor Tim Dwyer has made some comments to the Sunshine Coast Daily about its progress:

“The Sunshine Coast Solar Farm has saved council $1.7 million – more than double the amount we’d hoped for in the first year,” Cr Dwyer said.

“We have met our offset goal as well – offsetting more than 100% of council’s energy use across all our facilities and operations.

“We’ve generated more than 26,300 megawatt hours of energy in 12 months. To put that into perspective, the average Australian home uses around six megawatt hours per year.

“We’ve saved more than 20,500 tonnes in carbon emissions – the equivalent of taking about 4300 cars off the road for one year.

“Council’s solar farm project has also received three prestigious awards for boosting productivity through infrastructure, sustainability excellence and planning excellence.

“Our Council is the first local government in the country to deliver a solar farm.

“With projects like the solar farm, we are delivering on our vision to be Australia’s most sustainable region – healthy, smart, creative.”

According to the Sunshine Coast Council website, it’s also the first solar farm in Australia which operates at 1500 volts DC, allowing it to operate more efficiently. 

Mayor Mark Jamieson said farm will allow the local council to take control of its own electricity supply, helping with rising electricity costs and also providing an environmentally friendly way to run their facilities:

“All power consumed at all of council’s facilities, including our administration buildings, aquatic centres, community and performance venues, as well as holiday parks, libraries, art galleries and sporting facilities, will be offset with energy from a renewable source thanks to this nation-leading project,” Mayor Jamieson said.

 

 

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Primo Smallgoods Solar – Company to install 3.2MW

Primo Smallgoods are set to install Australia’s biggest commercial solar rooftop PV system with 3.2MW to go up at their Wacol, Brisbane plant in August. 

Primo Smallgoods Solar – Commercial Solar

Primo Smallgoods Solar Installation`
Primo Smallgoods Solar Installation (source: primo.com.au)

The installation will cut Primo Smallgoods’ reliance on the grid by 19 percent, according to chief operating officer Bruce Sabatta:

“JBS globally has set sustainability targets to achieve by 2020. These targets cover water, gas, electricity and greenhouse gas emissions amongst others,” he said.

“As part of the JBS business, Primo has a part to play in the reduction of our environmental impact in Australia,” Sabatta was quoting as saying back in June.

“With our new solar panel installation in place, we will use the power generated from the solar panels instead of solely relying on power from the electricity grid.

“We are making significant investments in energy efficiency to lower our carbon footprint and to continue to improve our efficiency leadership position in the industry,” Sabatta continued.

The solar array will be installed by CleanPeak Energy and Todae Solar, following a tendering process by Solar Choice in 2016. Todae are also responsible for the Brisbane Markets’ solar installation and the 12.3MW solar system Stockland are currently rolling out, so they have a lot of experience in these large-scale commercial solar installs. CleanPeak Energy was started by Philip Graham and Jonathan Hare, previously of Citigroup and Origin Energy, in order to work solely on commercial solar – so this job looks like a perfect fit.

“Our model is to effectively work with a customer to deliver a power solution that is renewable and cheaper than their current offer,” Mr Graham was quoted in the AFR.

One Step Off The Grid are reporting that the Primo solar system will generate 4,869MWh of power in its first year – the equivalent of powering 20,032 homes for one year.

This comes at a time where private/commercial investment in large-scale solar is at an all-time high with companies like Hunter Douglas investing in 800Kw earlier this month. 

“This installation is notable for the cutting edge technology that we have chosen, and its cost effectiveness which will see it pay back the investment in a little over four years,” said Tony Politis, Hunter Douglas MD for Australia/NZ.

There are many other commercial solar installs on the books all across Australia, including:

Brisbane Airport are installing a huge 6MW solar array at multiple locations which they are hoping to have complete by the end of 2018. 

BlueScope Steel will buy 200 gigawatt-hours of electricity a year from the Finley solar farm.

Cannington Mine‘s owner, South32, will install a 3MW solar farm across six hectares – to supply the mine’s accommodation village and airport. 

 

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Lyon Group – Global Solar Agreements

Brisbane based Lyon Group have announced three integrated solar and storage projects in Australia will be launched via partnerships they have signed with two overseas companies. The renewable energy developer has partnered with US-based Fluence and Japanese energy company JERA to develop large-scale solar+battery projects. 

Lyon Group’s Global Solar Agreements

Lyon Group, JERA, Fluence CEOs to announce partnership.
Lyon Group, JERA, Fluence CEOs to announce partnership. (source: Lyon Group)

Both JERA and Fluence are already joint ventures (JERA of TEPCO Fuel & Power Inc and Chebu Electric Power Co, and Fluence borne of Siemens and AES). The latter focuses on battery storage and service provision, and JERA would invest in the projects. Lyon will remain the project developer.

“This collaboration agreement is based on a shared understanding that the world requires low emissions energy systems that are also secure, reliable and affordable. Utility-scale battery storage solutions across new and existing generation plants will be a key enabler,” said David Green, Lyon Chairman.

The partnerships will be put to work with the following three solar projects Lyon is developing in need of some answers viz a viz their industrial scale battery storage solutions:

According to Nikkei Asian Review, the three solar power pants will generate 550MW when online at the end of next year. JERA are going to contribute over 10 billion yen (~$122 million AUD) to the projects, which will include a 100MW lithium-ion battery storage system at the Riverlands solar farm in South Australia, equal largest of its kind on the planet (the other 100MW battery isn’t far away – the Tesla Powerpack farm installed in South Australia last year as part of the Hornsdale Power Reserve)

We’ll keep you updated how this partnership progresses. Great news for solar energy in Australia! 

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Western Downs green power hub council approval.

The Western Downs green power hub planned by French renewable giant Neoen has received council approval for a solar farm of size up to 500MW. This impressive project promises to bring  North Queensland solar jobs and continue the large-scale solar revolution in Queensland and Australia.

The Western Downs green power hub

The Western Downs green power hub
The Western Downs green power hub proposed location (source: westerndownsgreenpowerhub.com.au)

The Western Downs green power hub will be located 22km south of Chinchilla and 62km north west of Dalby, according to RenewEconomy. No word on the specifics of the gear they will use, but a huge 1500 hectares of ground mounted solar panels will feed two hectares of battery energy storage. This is going to be a gigantic undertaking.

According to the website for the green power hub, they’ll produce around 1.05MWh (million megawatt hours) per year.

“A combination of an ambitious Queensland Renewable Energy Target and a proactive government to meet those targets provide highly favourable conditions for renewable energy projects in the State,” Neoen says on the website.

“Consequently, the company will expedite the development of Western Downs Green Power Hub, as well as several other projects in Queensland.”

Construction was initially slated to commence in Q3 this year but it now looks like mid a 2019 start date will be more likely, according to the website.

“Construction is expected to start mid 2019 providing employment opportunities for the region.”

An article from the Chronicle in September last year (when it was being touted as a 250MW solar plant) noted that the consturction phase of the project will generate up to 300 solar jobs and between two to four during regular usage.

Neoen have been responsible for a number of huge projects across Australia recently:

 

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Mackay Solar Tender (Council): $2.1m from Akcome

Mackay Council have decided which company to go with after putting out a solar tender last year. The Mackay solar project will be built by a Brisbane-based company – Akcome Power – who offered a significantly lower price than their competitors. 

The Mackay Solar Tender Overview.

We wrote about the initial tender process last year – the initial pool of EOI respondents was 16 companies, which ended up being whittled down to four.

Akcome Power Pty Ltd won the tender with a price significantly lower than the other three remaining respondents. Personally I’d be a bit wary of such a major discrepancy between quotes, so let’s dig a little deeper. Akcome’s proposal involves the usage of Huawei and ABB inverters – with 10 year warranties – and ‘unspecified’ solar panels with 30-year warranties.

Nevertheless, consultancy Peak Services reviewed the proposal and Akcome as a company and came away satisfied. Have Mackay Council got a fantastic deal or will they end up paying the prices for not paying the price and end up with a system where performance doesn’t meet expectations or quality issues abound? Time will tell. There are certainly plenty of perturbed solar companies in North Queensland right now.

According to the council, the final price will be offset by a little over half a million in STCs (small-scale renewable energy certificates). This, in conjunction with other ‘council and contingency costs’, will bring the final price to around $1.97 million.

“Council, like households, has been hard hit by rising electricity prices,’’ Mackay Mayor Greg Williamson said in a statement last Friday, according to One Step Off The Grid.

“This fairly modest initial outlay is an investment in the future which will provide ongoing cost savings.”

Mackay Solar Council Tender
Mackay Solar Council Tender (source: mackay.qld.gov.au)

This will be a great thing for solar jobs in Mackay – the 21 council facilities will require plenty of help getting the solar installed – and it seems like the majority of it will be going to local installers:

“Akcome has advised it will engage local Clean Energy Council of Australia-accredited electricians, as well as local non-accredited experienced electricians to work with them, plus local trades assistants,” Mackay Mayor Greg Williamson said.

“They expect to use 60 to 70 per cent Mackay-area based tradespeople to complete the installation.”

You can read the minutes of the Mackay council meeting where they decided which company to use by clicking here

 

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Clare solar farm in North Queensland now online.

The Clare solar farm, Queensland’s biggest solar farm at 100MW capacity, has connected to the grid and started exporting renewable energy. This is one of many solar projects due in 2018, totalling around 1400MW.

About the Clare Solar Farm

Clare Solar Farm
Clare Solar Farm (source: claresolarfarm.com.au)

The Clare solar farm project is located around 35km south-west from Ayr in North Queensland. It’s the biggest operating solar farm in the state, dwarfing the incumbent 50MW Kinston solar project. It is owned by Lighthouse Solar who also have ownership of the Hughenden solar farm which has a 20MW capacity and is about to begin production itself. 

We wrote about the Clare solar farm last July when it was a 125MW plant potentially going up to 150MW. It’s been launched with 100MW with the space to potentially expand down the track. They’ve signed a Power Purchase Agreement (PPA) with Origin Energy along with the Bungala solar farm, which will be the biggest solar farm in Australia when it completes later this year.

According to the Clean Energy Council, around $2.6 billion of solar projects will be connected to the grid in 2018, adding around 1400MW of capacity. A solar forum held in Brisbane by the CEC last week noted that the boom in solar investment (both domestic and commercial) has led to 2760 Australian solar jobs added to the economy. 

“Large-scale solar has gone from an emerging technology in Australia at the beginning of the decade to a genuinely game-changing form of power that is cheaper than new coal or gas. It has exceeded the expectations of even the most optimistic predictions,”  CEC chief executive Kane Thornton said in comments to RenewEconomy.

“Along with the national Renewable Energy Target, support from the Queensland Government, the Australian Renewable Energy Agency and the Clean Energy Finance Corporation has helped to make this one of the lowest-cost options we have for electricity today.”

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