Govt reopens $306.5m solar tender

The federal government has reopened a multimillion-dollar solar energy grant process amid concern about an investment shortfall at its preferred first-round choice.

At stake is a $306.5 million grant on offer from the government’s Solar Flagships program.

Energy Minister Martin Ferguson said the government would seek updated applications from four shortlisted round-one groups under the Solar Flagship photovoltaic (PV) program.

The consortium behind the Moree Solar Farm had proposed major changes to its project and failed to meet a December deadline to secure financial backing.

BP Solar, Pacific Hydro and Fotowatio Renewable Ventures were behind the Moree project, proposed to design, develop, construct and operate a 150MW solar PV power plant in the NSW tablelands.

Moree Solar Farm and three other shortlisted projects from AGL, Infigen-Suntech and TRUenergy have been asked to submit revised applications to the Solar Flagships Council.

Mr Ferguson said the process would provide the Moree project with an opportunity to demonstrate it was still the most meritorious.

“The government is committed to the deployment of large-scale renewable energy technologies in Australia,” he said in a statement.

“However, we must also ensure that taxpayer money is spent prudently.”

The Moree consortium had not met its obligations under the funding arrangement, the minister said.

“The government now has an opportunity to take another look at the Moree project against its competitors to ensure the government continues to back the best PV project available at this time.”

The government expects to finalise its decision in the second quarter of this year.

Mr Ferguson cited a period of change and consolidation in the solar industry, linked in part to the significant reduction in the prices of photovoltaic panels.

Some analysts report the price of panels has dropped by as much as 70 per cent.

The energy minister said it would extend a deadline for the Solar Dawn consortium in Queensland to secure finance for its $1.2 billion 250MW solar thermal project.

It was the only solar thermal project assessed to be viable by the Solar Flagships Council.

Mr Ferguson said it remained the best-value solar thermal project.

The consortium partners Areva and Wind Prospect now have until June 30 to secure the needed investment, after missing the deadline of December 15.

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