French renewable group Neoen seals $300m Hornsdale stage 3
Source: Australian Financial Review
French renewable energy group Neoen expects the cost of wind power to continue falling after securing finance for the $300m third stage of the Hornsdale wind farm in South Australia.
Franck Woitiez, managing director of Neoen Australia, said Hornsdale's owners will seek a rule change from the Australian Energy Market Operator if a trial of frequency control and grid stability services from Hornsdale's wind turbines later this year is successful.
He said the trial of grid stability services - a factor in wind-dependent South Australia's frequent blackouts - was "part of the change in the network" and with coal power disappearing, more and more renewables, storage and grid stability services would be needed to run the grid safely.
The funding for the 109MW Hornsdale Stage 3 was backed by a 20-year power purchase agreement with the Australian Capital Territory at $73 a megawatt hour. Mr Woitietz said Neoen now has 455MW of wind and solar projects in operation or under construction in Australia, with a target of 1000MW by 2020.
Mr Woitiez said that with further improvements in wind-turbine technology he expected the price of wind power "in the market at below $70/MWh quite soon", making it increasingly competitive in the National Electricity Market.
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