Update on Alinta Energy’s Commitment to Renewable Energy Development

14/02/2018
Alinta Energy supports the Renewable Energy Target (RET), which has successfully increased Australia’s renewable generation capacity and brought Australia closer to meeting its emission reduction targets.
 
Alinta Energy has historically supported the development of large renewable energy generation facilities, such as the Bald Hills Wind Farm in Victoria and the Walkaway Wind Farm in Western Australia.
 
During 2017, Alinta Energy entered into a number of additional power purchase and off take agreements with the owners of various new renewable energy projects, including the:
  • Badgingarra Wind Farm (WA): 130MW conditional off take agreement;
  • Collinsville Solar PV (QLD): 29MW conditional off take agreement;
  • BayWA wind farms (Vic): 35MW conditional power purchase agreement;
  • Foresight Solar (NSW): 53MW conditional power purchase agreement; and
  • Rugby Run Solar PV (QLD): 52MW conditional power purchase agreement.
 
These renewable generation facilities are now under construction and are expected to become operational in 2018.
 
Alinta Energy is also developing business cases to construct and operate its own large scale renewable energy generation facilities, including:
  • Yandin Wind Farm (WA): up to 300MW capacity;
  • Various Wind Farms (NSW): up to 520MW capacity;
  • Naroghid Wind Farm (Vic): 43MW capacity; and
  • Pilbara solar (WA): 60MW capacity.
 
Alinta Energy will make final investment decisions on these projects over the coming period.
 
Alinta Energy has elected meet its 2017 RET liabilities through the payment of the shortfall charge. Alinta Energy plans to use the LGCs generated by its pipeline of renewable energy investments to ‘make good’ on this shortfall (i.e. surrender the LGCs required to cover the shortfall) within the three year window allowed under the Renewable Energy (Electricity) Act 2000 (Cth) meaning that our strategy will result in new generation being built at the most efficient cost for our growing customer base.
 
This strategy is consistent with the objectives of the RET because it has allowed Alinta Energy to confidently commit to a range of large new renewable energy investments.
 
This strategy will also minimise the cost of meeting Alinta’s RET obligations, therefore helping us to offer competitive energy products to our customers, promoting greater competition in the energy market on a go forward basis.
 
The renewable investments Alinta Energy is progressing will complement its current generation fleet and expand on its ability to provide clean, affordable and reliable energy for its customers. We will continue to bring real competition to the Australian energy industry. This is evidenced by recent analyst reports noting our growth strategy, which is seen as a major driver of downward pressure on energy prices in the National Electricity Market1. The approach, outlined above, with this part of our portfolio will ensure we can continue to play a significant role in delivering affordable energy.