Origin Energy has committed to a 530MW long-term power purchase agreement (PPA) for the Stockyard Hill Wind Farm, setting a new benchmark for renewable PPA pricing in the market.
Under the terms of agreements executed with Goldwind, Origin will sell Stockyard Hill Wind Farm, Australia’s largest wind development, for $110 million and sign a long-term PPA from the commencement of operations in 2019 to 2030.
Origin will agree to buy all of the power generated by the wind farm and the associated Renewable Energy Certificates (RECs) for a market leading PPA price of below $60/MWh.
Stockyard Hill Wind Farm will be located about 35km west of Ballarat, Victoria and is slated to be Australia’s largest wind farm. The project will feature 149 wind turbines and will have a total of capacity of up to 530MW and is likely to generate approximately 300 jobs during construction.
Origin CEO Frank Calabria said the announcement is important because, “it indicates just how fast the transition is occurring in Australia’s energy market. Not only is renewable energy being rolled out rapidly, the costs have fallen at a very fast rate.
“Through our deal with Goldwind, Origin has been able to add a substantial amount of new renewable energy to our portfolio at a market leading PPA price, and as Stockyard Hill is in Victoria, this will help to cover a large portion of the load of the recently retired Hazelwood Power Station.
“Stockyard Hill’s development will boost the clean energy credentials of Victoria, which up until now has been known for having the most carbon-intensive energy supply of any Australian state or territory.
“It is this balance between renewables and gas-fired peaking plants, which is crucial to providing a secure, affordable and cleaner supply of energy for Australia into the future.
“Origin, which has been developing the project since 2009, would like to acknowledge the landholders and the local community who have been supportive of Stockyard Hill Wind Farm all through its early development,” Mr Calabria said.
The sale of Stockyard Hill Wind Farm is subject to the satisfaction of certain regulatory approvals. The PPA will also be subject to the satisfaction of a number of conditions including Goldwind achieving financial close.