ActewAGL looks to new place in sun

Canberra Times
Tuesday 22/12/2009 Page: 5

ActewAGL and three partners have sold their interests in a proposed $120 million windfarm near Tarago with ActewAGL to focus on its bid to build a solar farm in the ACT. The windfarm received NSW Government development approval in October 2005 but with no purchaser for electricity from the windfarm, construction has not begun. Rights to the windfarm, on the Woodlawn and Pylara properties near Tarago, have been sold to Infigen Energy, which owns the nearby $400 million Capital Wind Farm near Bungendore, officially opened on November 18 by Prime Minister Kevin Rudd.

The company expects to lodge an amended development application for the Tarago project in the first quarter of next year but has not said when construction of a 42 MW capacity windfarm would begin. It is one of four NSW sites on which the company proposes to build wind farms, probably within five years. Two other sites considered by ActewAGL, Mt Spring near Hall but in NSW and Collector, were soon abandoned. But in August 2004, ActewAGL predicted construction of the first windfarm to supply electricity direct to it would begin in about nine months. Its partners in the proposed Tarago project were Acciona Energy, Collex and ANZ Infrastructure Services.

ActewAGL general manager business development aid strategy Dianne O'Hara said yesterday the proposed windfarm near Tarago had not progressed since it had obtained development approval in 2005. "In the end we decided to sell it. The new owners are better placed to develop it," she said. The four parties ownership structure had made it hard to find a mutually acceptable way forward. Each party had its own priorities. Much of the delay had occurred while waiting for market conditions to be right. "We had discussions with the new owners and believe the farm will progress under them."

ActewAGL still wanted to do what it could with renewable generation and had made no secret of its keenness to be involved in the proposed ACT solar farm. "Our efforts are concentrating on that." ActewAGL is one of 10 proponents invited by the ACT Government to develop detailed proposals for a solar farm. Ms O'Hara said producing renewable energy in the ACT was quite restricted, "which is why we are keen to participate in the solar farm". Without wanting to disclose too much to its nine competitors, she said ActewAGL was confident it could produce enough electricity from a solar farm to power 10,000 homes. The development approval for the proposed windfarm near Tarago provided for 140 MW hours a year - enough to power 22,000 homes. Industry sources believe a mandatory renewable energy target of 20% by 2020 will improve prospects.