While more than a dozen large-scale solar projects have been approved, or are in the approvals process, there is little prospect of them starting as planned — and thousands of construction jobs are also on hold.
Three projects called in by Victorian Planning Minister Richard Wynne at the request of Greater Shepparton City Council were approved in 2018 but have not progressed.
Global solar company Neoen already operates a solar fam at Numurkah but has approvals for a 250 MW solar farm at Goorambat and another 100 MW facility at Lemnos. The Lemnos facility is one of those that received ministerial approval.
Managing director Neoen Australia Louis de Sambucy said in electricity grid terms the projects sat in the Murray and Western regions.
“The Australian Energy Market Operator has determined that the grid in the West Murray Zone is effectively full, meaning there is limited capacity remaining within existing transmission lines,” he said.
“This is the main reason for the slowdown in new solar farms proceeding in the region — it’s about their ability to connect to the grid.”
The impact was acknowledged by the AEMO in a report on Victoria released late last year citing record levels of investment in large-scale renewable energy driven by the Victorian Government’s renewable energy target.
Rapid growth has led to instability on the network and the AEMO has outlined $3.5 billion of network development projects over the next decade, with a focus on renewable energy zones.
“Additional capacity will be unlocked in future as planned grid upgrades in the region are brought online; however, the timing for many of these upgrades is still yet to be determined.” Mr de Sambucy said.
The Leeson Group is planning a $520 million solar farm project at Corop that will create 700 jobs at the peak of construction and generate 440 MW included 100 MW battery storage. It also has another project at Girgarre, taking total project cost in the region to nearly $1 billion.
Leeson Group director Peter Leeson said the projects were proceeding but connections were a complicated process and there was a long queue because of the surge in renewable project.
“The transition has happened quicker than government expected,” he said.
“If federally we had better support this would happen quicker, but every project has been delayed.”
Mr Leeson was not critical of the AEMO, which he said was doing a really good job in the circumstances and was dealing with each project directly.
