APA signs Emu Downs offtake deal with Synergy

Energy infrastructure company APA Group has entered into an agreement with Synergy for the purchase of power from its Emu Downs solar farm near Cervantes, with construction of the project now set to begin next month.

Under the agreement, Synergy will purchase energy from the 20 megawatt farm for 12 years, starting in January 2018 when construction of the $47 million project is expected to be completed.

The solar project will share the transmission connection and facilities with APA’s existing 80MW Emu Downs wind farm, which it purchased in 2011 for $171 million.

“The Emu Downs solar project forms part of the execution of our growth strategy in the renewable power generation asset class,” APA managing director Mick McCormack said in a statement.

“The expansion of APA’s existing Emu Downs wind farm with the complementary solar generation makes logical and financial sense both from a power generation profile, as well as sharing transmission connection infrastructure.”

In September, the project received $5.5 million in funding for the project’s construction from the Australian Renewable Energy Agency.

Arena chief executive Ivor Frischknecht said the new generation of solar farms was proving to be attractive to energy retailers.

“I’m delighted that Emu Downs solar farm has entered into a 12-year purchase agreement to sell electricity to Synergy,” he said.

“As solar generates electricity during the day, wind farms tend to generate more power overnight in WA, co-locating wind and solar delivers more continuous energy generation and makes good business sense.”

APA said the agreement with Synergy combined with Arena funding meant construction of the solar farm would begin next month.