Queensland’s Oakey 2 Solar Farm Reaches Financial Close

Australia’s Clean Energy Finance Corporation (CEFC) has committed $55 million in debt finance to the 55MW Oakey 2 solar farm project in south-east Queensland, construction of which will start soon.

The site is located to the west of Toowoomba, approximately 6.5km from the township of Oakey.

The first stage of Oakey, a 25MW facility adjacent to the Oakey 2 site, is already under construction. The first stage is also being made possible with the assistance of the CEFC, which committed $19.5 million, and a grant of $2.2 million from the Australian Renewable Energy Agency (ARENA).

Combined, the 80MW AC (117 MWp) of capacity will generate approximately 138,800 MWh annually; enough clean electricity to power the equivalent of 24,000 Queensland homes. As with Oakey 1, Oakey 2 is being developed by Canadian Solar and will be powered by 205,860 Canadian Solar panels. The modules will be mounted on single-axis trackers that track the sun throughout the day and boost energy output.

The battery-ready Oakey 2 will also incorporate five-minute forecasting technology, which will assist the Australian Energy Market Operator (AEMO) enhance grid stability.

 “Solar is an increasingly cost-effective energy solution in areas like Oakey, which have high levels of solar irradiation,” said CEFC Large-Scale Solar lead Gloria Chan. ” It makes sense to increase solar energy generation in these areas alongside investing in complementary technologies that enhance the stability of a renewables-powered grid.”

The Oakey 2 project’s construction phase will generate 120 construction jobs and local land owners will benefit from an additional source of income through long-term leasing.

The power station is expected to be connected to the grid by the end of this year.

Canadian Solar says it has a pipeline exceeding 1,000 MW of early to late-stage PV developments in four Australian states – Queensland, New South Wales, Victoria and Western Australia.

The CEFC has to date committed approximately $495 million in finance towards large-scale solar PV projects in Queensland, supporting and accelerating the development of more than 750MW of capacity.

“A key feature of the CEFC’s role in the market is to encourage critical technologies that assist in Australia’s smooth transition to a cleaner, more reliable electricity grid,” stated Ms. Chan.

2018 will be a big year for big solar in Queensland, with a number of projects expected to be connected to the grid. According to Green Markets’ Renewable Energy Index, 1,871 MW of large-scale solar projects were under construction in the state by the end of November 2017.