Hydro Tasmania, Shenhua Group Sign for $16 Billion Deal to Develop Windfarms in Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--Hydro Tasmania (Hobart, Australia), a leading provider of renewable energy in Australia, recently announced an agreement with Shenhua Group Corporation Limited (Beijing, China) to build $16 billion worth of windfarms in Australia. According to the agreement, Hydro Tasmania will partner with Sneuhua to develop several windfarm projects with a total 700 megawatts (MW) of capacity in Australia by 2020.

"This strategic agreement builds upon the excellent relationship that has developed between Hydro Tasmania and Shenhua over the past few years, with respect to Australian windfarm development," said Hydro Tasmania Chairman David Crean. "This follows the Roaring 40s joint venture, involving Shenhua subsidiary Guohua and Hydro Tasmania from 2007 to 2009, where several windfarms were jointly constructed and managed in China."

Hydro Tasmania is currently working on a couple of windfarm projects in Australia, which are in various stages of development.

Hydro Tasmania and Shenhua Clean Energy Holdings, as joint owners, are building a 168-MW Musselroe windfarm project in Tasmania, Australia. Hydro Tasmania is developing the windfarm with Consolidated Power Projects Australia Pty Limited (Adelaide, Australia), which is serving as electrical contractor, and Hazell Bros Tasmania (Tasmania, Australia), which was awarded a contract for the balance-of-plant design and construction.

The project is now under construction and will involve the installation of 56 Vestas wind turbines, which will run and operate by end of 2013.

In 2012, Hydro Tasmania proposed to build the biggest windfarm in Australia, which would cost about $2 billion to construct. The project is a 600-MW windfarm project, which will be built on King Island in Tasmania. The company is currently conducting initial pre-feasibility assessments and community consultation for the project. The company has yet to assess the outcomes of preliminary investigations and community consultation to determine whether the project will proceed to a full feasibility process. If the company achieves all the approvals, construction could begin in 2017.

The agreement between the two companies to build 700 MW of windfarms will contribute hugely to the nation's 2020 renewable energy target. The Australian Renewable Energy Agency projected an 87% increase in wind energy from 2010 to 2030, which would make it the fastest-growing renewable energy source in Australia.

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