SIMEC ZEN Energy, the Australian energy arm of GFG Alliance, has signed two long-term power purchase agreements (PPAs) with German developer Wirsol Energy.
SIMEC ZEN will purchase energy from the 90MW Clermont Solar Farm, north of Emerald in Queensland, and 110MW Wemen Solar Farm, near Mildura in Victoria.
The projects commenced construction in December 2017 and are due to be commissioned by the end of 2018.
SIMEC ZEN Energy chairman Sanjeev Gupta said the agreement reinforced the company’s commitment to the “goals of economic and environmental sustainability”.
“We see Australia, with its abundance of energy sources, as the natural home for the expansion of energy‐intensive industry, with renewables to play an integral role,” he said.
The Clermont Solar Farm will produce the equivalent energy to power 31,000 homes, and the Wemen Solar Farm will produce the equivalent energy to power 34,000 homes.
“The signing of these PPAs marks another important milestone for Wirsol in Australia as we move towards our target of 1GW of solar by 2020,” Wirsol Energy managing director Mark Hogan said.
“We share SIMEC ZEN’s vision of delivering cheaper, more reliable and environmentally sustainable energy and we see a strong alignment between our businesses.”
Wirsol has five solar projects spread across Victoria and Queensland, each due to be connected to the national power grid by the end of 2018.
The five projects have a combined capacity of 398MW with the recently commissioned Gannawarra solar project in Victoria to be supported by a 25MW/50MWh Tesla Powerpack battery.
This agreement follows the recently signed agreement between SIMEC ZEN and French developer NEOEN to take the majority of the 100MW Numurkah Solar Farm six weeks ago to support its Laverton Steelworks.