A $12 million solar power station to be built in Kalgoorlie has been scrapped after the company behind the operation, Solar Systems, could not get federal funding.
The then Carpenter government had last year committed $4.5 million towards the power station which was to be the first multi-megawatt solar photovoltaic project in the country to be connected to the mainstream electricity grid.
Solar Systems business development manager Barry Hendy told WA Business News the project had been put forward to private investors that included funding contributions from both state and federal governments.
"The economics for an investor only worked with government support; without government support it's not an economic proposition for investment," he said.
Mr Hendy said it became clear the project would not receive federal funding after a renewable energy program the company had applied for the project closed last month.
He said planning for the project was in the very early stages.
The project would have consisted of 48 dishes producing around 3,200 megawatt hours of electricity a year, enough to power 500 homes.
Mr Hendy said the company will look at other federal government renewable energy funding programs to see whether the Kalgoorlie project meets the criteria.