Australian firm Genex Power Ltd (ASX:GNX) will receive grant funding of up to AUD 8.85 million (USD 6.6m/EUR 6m) from the Australian Renewable Energy Agency (ARENA) to support the construction of its 50-MW Kidston solar project in Queensland.
In addition, the company said today it has secured a long-term contract, similar to a power purchase agreement (PPA), for 100% of the project's power from the Queensland government. With the contract providing long-term revenue certainty, Genex said it could now finalise finance arrangements to fund construction of the project and reach financial close in the fourth quarter of 2016. Construction is scheduled to start in the first quarter of 2017.
Genex's project is one of 12 that won grants as part of ARENA's large-scale solar funding round, the results of which were announced today. The receipt of the grant is subject to completion of standard form documentation which is expected to happen in coming weeks, Genex said.
Under its Solar 150 programme, meanwhile, the Queensland government has committed to supporting up to 150 MW of solar generation in the state. The initiative is in conjunction with the ARENA tender, with the Queensland government providing long-term revenue contracts to successful Queensland bidders for the ARENA funds.
Separately, the Australian renewable energy company Infigen Energy (ASX:IFN) confirmed the award of AUD 10.9 million in the ARENA funding round for its 42.5-MW Manildra solar project in regional New South Wales. The company is collaborating with US thin-film solar module maker First Solar Inc (NASDAQ:FSLR) on the project. It said it looked forward to advancing the development to the next stage.
(AUD 1.0 = USD 0.747/EUR 0.679)
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