BP to sell stake in Moree Solar Farm

21st Dec 2011

BP, the British energy giant, is planning to sell its stake in a major solar power project in New South Wales, according to media reports.

The move comes as part of BP's decision to pull out of the solar power market and wind down its solar arm, BP Solar.

In an internal memo leaked to the media, BP Solar's chief executive, Mike Petrucci, said the economics of solar power no longer made sense for the business.  

"The continuing global economic challenges have significantly impacted the solar industry, making it difficult to sustain long-term returns," he said.

BP's decision will not come as a huge surprise to industry watchers, as it follows decisions to pull out of a number of solar power projects in Europe, the US and here in Australia over the past three years. BP also said in July that it would stop manufacturing solar products.

BP Solar, along with its consortium partners, Fotowatio Renewable Ventures and Pacific Hydro, won the tender to develop the Moree Solar Farm in June. It will be Australia's first utility-scale solar PV facility and has been described as the country's flagship solar power project, with construction work due to commence early next year.

Once complete, it will become one of the world's largest solar PV generation facilities and will provide power for the Australian grid for 25 years. It will feature 650,000 PV panels and will power 45,000 homes.

When it won the tender, BP Solar predicted that the project would pave the way for solar power to play a central role in Australia's transition to a low carbon economy. 

In its most recent update, the Moree Solar Farm consortium said the project was progressing well, with meetings taking place in the local community and positive headway being made on the design and grid connection work.

According to the Financial Times, BP will now look to sell its stake in the project. It will also divest its shares in the consortium building a 32MW solar power project at the US Department for Energy's Brookhaven National Laboratory.

Solar power will play an important role in helping Australia reduce its reliance on fossil fuels. The government pushed through its controversial climate change legislation earlier this year and is keen to subsidise renewable energy. The federal government's Solar Flagships Programme will provide financial support to the tune of $1.5 billion to fund solar power projects around Australia.

Posted by Mike Peacock – solar correspondent

 

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: