French independent power producer (IPP) Neoen has inked a four-year power purchase agreement (PPA) with energy retailer SmartestEnergy Australia for 50% of the energy generated from the 440MW Culcairn Solar Farm in New South Wales.
The PPA will commence in 2026, once the project becomes operational, and will support SmartestEnergy in meeting the growing demand for renewable energy solutions from commercial and industrial businesses in the state.
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Culcairn Solar Farm is approximately 45km north of Albury and 70km south of Wagga Wagga. It will have an operational lifespan of 30 years and could include a 100MW/200MWh battery energy storage system (BESS). It will connect to the National Electricity Market (NEM) via an on-site 330kV transmission line managed by TransGrid.
Neoen secured development consent from the New South Wales Department of Planning, Industry and Environment for Culcairn in March 2021, despite receiving 50 complaints from members of the public. At the time it was predicted that the project would cost around A$636 million (US$427 million) to develop.
The solar PV project is being developed and will be owned by Neoen. It is the company’s second-largest solar farm globally, after the 460MW solar PV project at Western Downs Green Power Hub, which is already in operation in Queensland.
Robert Owens, CEO of SmartestEnergy Australia, said the PPA will help the company continue in playing its part in the energy transition in Australia whilst capitalising on the increasing demand for renewable energy solutions.
“This agreement with Neoen underscores our purpose in the market to support the renewable energy transition. By partnering with Neoen, we continue to provide renewable energy solutions for our customers, and we can play our part in ensuring that the transition in Australia keeps pace,” Owens said.
SmartestEnergy Australia bolsters renewable energy offering via PPAs
SmartestEnergy Australia has been increasing its renewable energy offering through the execution of PPAs. Indeed, at the end of 2023, the company signed a PPA with Enel Green Power Australia, to source energy from the 93MW Girgarre Solar Farm in Victoria, with an annual electricity production capacity of 200GWh.
Earlier in the same year, SmartestEnergy Australia signed another PPA with Greek firm Mytilineos for its 40MW Kingaroy solar farm in Queensland. Mytilineos said that SmartestEnergy would purchase “a substantial portion of the solar farm’s electricity output over a long-term period”.
SmartestEnergy Australia also signed a long-term PPA in January 2023 with renewable energy project owner Octopus Group to offtake 25% of generation from a solar PV project to offer commercial and industrial companies renewable energy. Based in New South Wales, the 333MW Darlington Point Solar Farm was commissioned in 2020.
