DeGrussa solar power plant project, Australia

14th August 2015 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

DeGrussa solar power plant project, Australia

Name and Location
DeGrussa solar power plant project, Australia.

Client
juwi Renewable Energy will develop and operate the project.

French renewable-energy firm Neoen will own the facility.

Project Description
The DeGrussa solar power plant will be the largest integrated off-grid solar and battery storage facility in Australia, and one of the world’s largest integrated solar installations, providing peak load power for a mining operation.

The project comprises a 10.6 MW solar array using 34 080 solar panels over 20 ha.

It uses single-axis tracking technology, combined with 6 MW of short-term battery storage and will be located near the site of Sandfire Resources’ DeGrussa underground mine and 1.5-million-tonne-a-year concentrator, about 900 km north-east of Perth, in Western Australia.

The solar facility has been designed to provide the bulk of Sandfire’s daytime electricity requirements, offsetting about five-million litres of diesel fuel a year and abating more than 12 000 t/y of carbon dioxide.

The solar power station will be fully integrated with the existing 19 MW diesel-fired power station at DeGrussa, which is owned and operated by Pacific Energy subsidiary Kalgoorlie Power Systems (KPS).

This integrated system will be designed with the diesel power station continuing to provide baseload power for the DeGrussa mine, with sufficient minimum load to ensure it can respond quickly to meet the power requirements of the process plant and underground mine.

Agreements have been completed with KPS for the integration of the solar power facility.

Value
The project is valued at an estimated $40-million.

The Clean Energy Finance Corporation (CEFC) is committing up to $15-million in finance towards the project, while the Australian Renewable Energy Agency (Arena) is providing $20.9-million in funding, with Neoen contributing most of the balance.

Sandfire’s cash contribution to the project will be less than $1-million.

Duration
Construction activities at the DeGrussa mine site was expected to start in July 2015, with the facility expected to be fully operational in 2016.

Latest Developments
Sandfire has executed a final power purchase agreement (PPA) with juwi.

Under the PPA, Sandfire will buy the solar power generated at a fixed rate that is lower than the historical cost of diesel-generated power.

Diversified infrastructure and survey solutions company OTOC has secured the procurement and installation contract – a joint venture with juwi for the project.

Key Contracts and Suppliers
Sandfire (PPA), CEFC, Arena (finance).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800, fax +61 8 6430 3849 or email info@sandfire.com.au.
juwi press officer Felix Wächter, tel +49 6732 96 57 1244 or email waechter@juwi.de.
CEFC, tel +61 4 57 732 219.
OTOC, tel +61 8 93 17 0628.
Arena, tel +61 2 6243 7773.
Neoen, tel +33 805 160 022