Several clean energy assets in Queensland will be connected to the National Electricity Market via critical transmission and grid infrastructure that will be developed thanks to a historic CEFC investment in the Southern Downs Renewable Energy Zone (REZ).
The $160 million CEFC financing commitment, which represents its first investment to promote the establishment of a REZ, will open up an additional 500 MW of new network hosting capacity, in addition to the anticipated 1000 MW of renewable plant capacity to serve the MacIntyre Wind Precinct.
The precinct will include the 103 MW Karara Wind Farm and the 923 MW MacIntyre Wind Farm, which will make it one of the largest onshore wind farms in the world.
The project marks the first time that generator contributions will pay the cost of constructing critical REZ infrastructure, which represents a substantial shift and illustrates a new method of delivering a REZ.
In addition, by building the REZ at scale and lowering connection costs for the initial or foundation generators, Powerlink will be able to future-proof it.
CEFC CEO Ian Learmonth said that by stepping in with concessional finance, the CEFC has provided a scale efficient solution to unlock greater renewable generation capacity in the Southern Downs REZ.
“This is an exciting demonstration of the transformative power of CEFC capital. Drawing on our experience developing Australia’s large-scale renewable energy sector, the CEFC has created an investment structure that helps Powerlink bridge the financing gap for generators through an initial lower connection charge,” he said.
“The CEFC is excited to work with Powerlink to help develop the Southern Downs REZ which will make an important contribution to Queensland efforts to reach its 50 per cent renewable energy target by 2030.”
Powerlink will build and run 65 km of high-voltage 330kV overhead transmission lines as well as two new switching stations in the southern part of the Southern Downs REZ.
According to projections, the project will create 400 jobs overall during the construction of the wind farms and support a further 220 jobs in building the transmission connection.
According to Powerlink Chief Executive Paul Simshauser, construction on the new infrastructure needed to connect the vast wind precinct to the grid has begun this month.
“At more than one gigawatt, this is easily Powerlink’s largest connection project to date,” Mr Simshauser noted.
“Importantly, it will also deliver Queensland’s second REZ. We are committed to maximising renewable generation capacity at the lowest possible cost to Queenslanders.
“The CEFC financing enabled unique contracting arrangements facilitating significant economies of scale.”
