Flow Power has announced its second renewable corporate power purchase agreement (PPA) with Victoria’s largest solar project.
The landmark agreement will see Flow Power contract 50MW of the output from the 200MWac Kiamal Solar Farm near Ouyen, until 2030.
This deal builds on the success of Flow Power’s renewable corporate PPAs, which were introduced to the Australian market by the company in 2017 with the 240MW Ararat Wind Farm, Australia’s third largest wind farm.
Flow Power announced the availability of its renewable corporate PPAs last year with the view to giving local businesses the opportunity to directly tap into an energy source that matches their consumption needs, lowers their energy bills, and simultaneously benefits the environment and economy.
Kiamal Solar Farm is the retailer’s first solar offering and first major contract with a renewable generator since announcing its change in ownership.
In February 2018, Canadian pension trust OPTrust took an ownership stake in the company as part of Flow Power’s ambitious plans to expand its portfolio for corporate clients, which include Olam Orchards, ANCA Machines and Yarra Valley Water.
Flow Power managing director Matthew van der Linden said the market has proven there is an appetite in Australia for renewable PPAs.
“We are pleased to welcome Kiamal Solar Farm into our portfolio and look forward to bringing a new solar offering to local businesses,” he said.
“Australian businesses need a solution that can offer cost-effective energy prices and long-term security.
“This agreement secures our solar output for Victoria and we are also in final negotiations with projects for additional wind output in Victoria.
“New South Wales, South Australia, and Queensland should follow soon after, completing our first phase of projects and seeing us out for the year.”
The 200MWac Kiamal Solar Farm is the first Australian investment from French developer Total Eren and has the potential to be sized up to 350MWac.
By 2022, Total Eren hopes to achieve 3GW of installed capacity at globally; it has already achieved 990MW as of May 2018.
“We have been working with Flow Power now for more than a year looking to create the most efficient way of structuring such an innovative solution for corporates,” Total Eren regional director Michael Vawser said.
“With the addition of the sophisticated investor OPTrust into the team at Flow Power, the deal received the boost it needed to get to execution and we are proud to be part of a new wave of power purchase agreements”.
Made up of more than 700,000 photovoltaic panels on nearly 500 hectares, the solar PV power plant received Planning Consent from the Mildura Rural City Council in September 2017, with construction commencing mid-year 2018.
Total Eren expects to involve up to 200 people from nearby communities and wider the region for the construction works that will span nearly 12 months.