The Clean Energy Finance Corporation (CEFC) has reached an agreement to provide $60 million of senior debt finance to Moree Solar Farm for the development and construction of a 56MW solar photovoltaic (PV) power plant.
The Moree Solar Farm is a large-scale single-axis tracking PV solar energy project located 10km south of Moree in northern New South Wales. The site covers approximately 350ha.
The project is expected to provide enough solar power for approximately 15,000 homes and abate more than 95,000 tons of CO2 equivalent.
The solar farm is sponsored by Fotowatio Renewable Ventures (FRV) – one of the largest solar energy companies in the world – and Pacific Hydro.
CEFC chief executive officer Oliver Yates said the organisation’s participation will set a precedent in the Australian market for financing large-scale solar PV on a merchant basis.
“Moree Solar Farm will utilise high efficiency polycrystalline panels. The CEFC financing can bridge the required debt funding in the immediate term to enable the sponsors to proceed to construction and provide flexibility to secure a PPA in the future,” he said.
“This utility-scale project should help drive down future construction costs as industry participants gain experience building large scale solar projects. The supplier selection process for this project is getting underway and the CEFC expects its participation will encourage greater development of a local supply chain,” Mr Yates said.