Renewable project battles with delays
THE developers of one of the world’s most advanced renewable energy projects at Hughenden say they are working with contractors and regulators to bring the plant into commercial operation more than 18 months after construction was completed.
Windlab was commenting on the $160 million Kennedy Energy Park project, which has been mired in regulatory delays and a contractual dispute.
The project is a joint venture between Windlab and Japan’s Eurus Energy Holdings Corporation, with a Quanta Solar and Vestas joint venture undertaking the engineering, procurement and construction contract.
In a statement to the Australian Securities Exchange, Windlab said Kennedy Energy Park and the EPC contractor continued to work with the Australian Energy Market Operator and Ergon Energy to complete the project’s registration as a generator.
This included modelling to demonstrate compliance with the project’s generator performance standards.
The firm said Kennedy Energy Park had agreed with the contractor to extend a standstill agreement regarding a previous adjudication determination and contractual dispute until May 29 or unless the disputed claims are settled earlier.
Kennedy Energy Park has been hailed as a world-leading pilot project combining 43MW of wind energy, 18MW of solar and 4MWH of Tesla battery power – enough to power 35,000 homes.
There are plans for a $2 billion, 1200MW expansion but these have been shelved.
In his 2019 annual report last month, Windlab chairman Roger Price said Kennedy Energy Park had been delayed by a failure to manage regulatory requirements and complete grid connection approval and generator registration process.
He said Windlab had seen slower than expected progress towards financial close on all its late-stage projects, including the Lakeland wind farm in
North Queensland and others in the United States, Tanzania and South Africa.
“These delays have largely been the result of factors outside of Windlab’s control such as regulatory changes and the delay in competitive auction processes for Power Purchase Agreements,” Mr Price said.
He said uncertainty and volatility should be expected as a lack of clear policy and outof-date regulation weighed on the industry over the next three to five years, but enormous investment would occur over the next decade or more.
Iron ore billionaire Andrew “Twiggy” Forrest is leading a consortium buying Windlab with shareholders to vote on a scheme of arrangement early next month.