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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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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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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Gladstone Solar Power – Installers, Plants, and more.

Gladstone solar – Gladstone has been experiencing a massive amount of interest in solar power over the last 18 months – both for residents and as a potential hotspot for solar farms. 

For a town that’s traditionally been ‘coal-based’, they’ve been very quick and forward thinking to jump on the renewables train (North Queensland solar has been growing exponentially for all of 2017)  – so if you’re looking for solar installers in Gladstone or just want to read about our projections for renewable energy in the region, please read on!

Gladstone Solar Power Installers
Gladstone Solar Power Installers (source: statedevelopment.qld.gov.au)

Solar Installers in Gladstone

Residential solar in Gladstone has been growing rapidly and there are a number of reliable installers in the local area – if you want to get a 5kw system installed, a Tesla Powerwall (or any other type of solar battery), please contact one of the installers below (and let us know how you get on!):

Do you install solar in Gladstone and would like to be included on this page? Please email us

Gladstone Solar Farms

As of October 2017 the Gladstone Observer noted that Mayor Matt Burnett has discussed their desire to become a “renewable hub” and that “numerous” companies had been courting the city in the hopes of being approved to install solar/wind farms in Gladstone. Cr Burnett noted that this doesn’t necessarily represent a ‘change’ from coal to solar, more so a diversification. 

“I believe one of these projects will start in the next 18 months, if not in the next 12 months,” Cr Burnett told the Observer – and it certainly seems that way. 

Eco Energy World has submitted a DA to build the Raglan Solar Farm at 75 and 199 Epala Road, and there is a shortlist of five companies looking to build at the Gladstone State Development Area. There’s also talk of a 450MW renewable hub at Aldoga. We’ll keep you updated with any news with regards to solar in Gladstone, watch this space! 

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2 North Queensland Solar farms approved

Fotowatio Renewable Ventures (FRV) has been approved to build two North Queensland solar farms in Clare and Tieri – to bring another 141MW of solar power to the sunshine state.

FRV and North Queensland Solar

FRV Logo - North Queensland Solar Farms
FRV Logo (source:claresolarfarm.com.au)

According to the Daily Mercury, the Tieri project will create 200-250 jobs during its development. It is a 96MW DC solar farm and will join another FRV farm in the same region – the 125MW Lilyvale Solar Farm.

With the additional approval of the 45MW Clare II Solar Farm in Burdekin (which will be constructed next to the Clare I solar farm) these two projects (Clare II and Tieri) will add 141MW to FRV’s current 281MW portfolio of solar farms in the approved, but planning stages. It’s going to be a big 12 months for solar farms Australia wide, but especially in Queensland where there has been a flurry of recent approvals (e.g. the mega solar farm at Bouldercomb, an smaller Longreach Solar Farm and many more). RenewEconomy data shows that there are 17 solar farms currently being built (or having reached financial close) in Queensland alone – and there are at least another 34 currently being planned.

FRV Australia Managing Director Cameron Garnsworthy said: “These recent planning approvals build on FRV’s track record of successfully working with local communities to achieve positive regulatory endorsement for its utility-scale solar projects”. They’ve previously been responsible for the succesful design and development of the Moree solar farm, the Royalla solar farm (both in New South Wales), and, as previously mentioned, the original Clare solar farm which is currently being upgraded. They have a proven track record overseas as well – FRV is a global developer of solar projects who have built utility-scale plants in locations as diverse as Jordan, Uruguay, India and Italy.

You can click here to read more about the existing 125MW Clare Solar farm which will potentially reach 150MW in its final design (On May 31 FRV sold it to Lighthouse Infrastructure and DIF who acquired a 50% equity interest each in the project).

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