Wind power rates fall further in 200-MW Australian Capital tender

Two wind projects have won the Australian Capital Territory’s (ACT) latest reverse auction targeting 200 MW of capacity, with the rates going as low as AUD 73 (USD 54.5/EUR 49.6) per MWh.

The 91-MW Crookwell 2 wind farm in New South Wales, a project developed by Union Fenosa Wind Australia, is to be completed in September 2018. It won a contract at a rate of AUD 86.60/MWh, which is a record low for a wind farm in NSW, says a press release today by the state Minister for the Environment and Climate Change, Simon Corbell.

Crookwell 2’s 28 turbines are expected to produce as much power as 41,600 Canberra homes consume.

The other winner in the tender is the third phase of the Hornsdale wind farm in South Australia by French energy company Neoen International SAS and Megawatt Capital. The first and second ACT wind auctions also resulted in feed-in tariff contracts for Hornsdale so this third award brings the total ACT-supported capacity to 309 MW.

The third stage of the Hornsdale project will have 35 turbines to produce enough to power 56,600 Canberra homes. The price per MWh is AUD 73.

With the latest tender the ACT has secured enough renewable energy contracts to meet its 100% target by 2020, Corbell said.

The combined economic benefits from reverse auction projects are estimated at over AUD 500 million. “This will ensure Canberra remains at the centre of this industry as it grows nationally and internationally. With four international wind companies establishing their headquarters here, the future jobs growth potential is enormous,” said the minister.

The reverse auction received 15 bids for roughly 1 GW of wind and solar.

(AUD 1 = USD 0.747/EUR 0.679)

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