Maoneng, AGL ink 300-MW solar PPA in Australia

Australian-Chinese group Maoneng will deliver the output equivalent to 300 MW of solar parks in New South Wales to AGL Energy Ltd (ASX:AGL) in support of the utility's plans to close its Liddell coal power plant in the state.

Under a power purchase agreement (PPA) signed last Thursday, Maoneng Australia will supply up to 800,000 MWh of electricity to AGL for 15 years. The power will come from at least two major solar parks in New South Wales, among which will be the 250-MW Sunraysia plant that will be built in Balranald, Maoneng said in a press release. Construction on the project is expected to begin in the second quarter of next year.

The remaining generation will be sourced from “the next most suitable project within Maoneng’s development portfolio” in New South Wales, the Australian-Chinese group said, adding that it will also consider buying shovel-ready projects.

"In the absence of bankable PPAs during a period of political uncertainty, we believe that the AGL contract sets us apart from the market," said Qiao Nan Han, Maoneng’s Vice President.

The PPA is part of AGL’s plan to shut down the Liddell station in 2022 and replace it with 1.6 GW of renewables, some battery storage, gas peakers and other capacities. As it announced in the weekend, the overall value of that project is estimated at AUD 1.36 billion (USD 1.02bn/EUR 868m).

(AUD 1.0 = USD 0.753/EUR 0.638)

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