ACEN builds Aussie solar farm

MANILA, Philippines — Listed ACEN Corp. is kicking off the construction of its second solar project in Australia after executing key contracts and reaching a final investment decision (FID).

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said its Australian unit signed the connection agreement with leading infrastructure and energy services provider Lumea and executed a photovoltaic (PV) module supply contract, allowing the 400-megawatt (MW) or 520-MW direct current (MWdc) Stubbo Solar project to proceed.

As part of commencing construction, a notice to proceed for the road works to site was issued last week.

The company said the finalization and signing of the connection agreement with Lumea was a major step in moving to this committed stage.

“It was good to work with Lumea to achieve this major milestone and confirm the connection of Stubbo Solar to the 330-kilovolt (kV) Transgrid network. The ability to get the connection agreement done illustrates the value of ACEN Australia’s strategy of connecting into secure and robust parts of the Transgrid Network,” ACEN Australia CEO Anton Rohner said.

For its part, Lumea CEO Richard Lowe said they are pleased to work with ACEN in connecting the Stubbo Solar project.

“It’s encouraging to see the commitment of industry and the forthcoming investment into delivering these vital renewable projects. This is an important milestone in the transition to a cleaner grid and delivering cheaper energy to regional areas for the future,” he said.

Located within the Central-West Orana Renewable Energy Zone in the Mid-Western Regional Council region, the Stubbo solar farm is ACEN Australia’s second solar project after the 720-MW New England Solar Farm in Uralla, New South Wales, which is currently being commissioned.

“Again we have been able to close and commit to a project on a merchant basis and, in the case of Stubbo, do this on our balance sheet. This announcement follows the success of securing A$75 million of debt funding from the CEFC just last week, which increased ACEN Australia’s aggregate debt facilities to A$315 million of long-term, green loan agreements with Japanese lender MUFG, DBS Bank of Singapore, and most recently the CEFC,” Rohner said.

Last September, ACEN committed A$800 million for the construction of the Stubbo Solar project.

The Stubbo Solar project will produce enough clean, renewable energy to power more than 185,000 average Australian homes.

Its development approval also includes provisions for a 200 megawatt-hour (MWh) battery energy storage system, allowing for the project to later on be adapted to dispatch energy when it is most needed during peak hours and provide important grid stability services.

“This recent string of successes in Australia all contribute to ACEN’s goal of 20 gigawatts (GW) of renewable energy by 2030. We are fully committed to our net zero ambition and are thankful to all our collaborators like Lumea, our local communities, our EPC contractors, module suppliers, and financing parties for joining us on this very important journey,” ACEN International COO Patrice Clause said.