Queensland Government Decides to End $1.5 Billion Solar Project

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Researched by Industrial Info Resources (Perth, Australia)--The $1.5 billion Solar Dawn project in Chinchilla was scrapped following an announcement from Solar Dawn's consortium last week. The consortium, led by Areva Solar and Wind Prospect, aimed to build a 250-megawatt (MW), Fresnel-type concentrated solar power plant near Chinchilla, in southwest Queensland, Australia. The consortium planned for this ambitious project in 2009, which was supposed to utilize Areva Solar's pioneered Compact Linear Fresnel Reflector (CLFR) technology and a gas boiler backup system to produce the electricity.

In 2009, the company was granted $400 million in funds by the Australian government's Solar Flagship Program. However, the consortium failed to meet the financial closure twice, even after the first deadline was extended from December 2011 to June 2012. Additionally, the consortium did not receive a power purchase agreement, one of the most important preconditions.

This prompted the Queensland government to withdraw its interest from the project. The solar consortium continued several discussions until the government decided this month to cancel $75 million worth of funding.

"The process of developing major power projects remains complex and time-consuming, particularly given that we are competing in a dynamic energy market," said Anthony Wiseman, a spokesperson for Arena.

Construction of this project was due to begin in 2013, which would have created up to 450 temporary jobs during construction and 30 permanent jobs when the plant becomes operational.

CS Energy Limited, with Areva Solar and FK Gardner (FKG) (Civil Contractor), is developing another solar project in Queensland called Kogan Creek, which will produce 44 MW. The solar farm is already under construction and will be located next to the existing 750-MW, coal-fired Kogan Creek Power Station in southwest Queensland.

Areva Solar is acting as an engineering procurement and construction contractor for this project, which will feature Areva's Solar Compact Linear Fresnel Reflector (CLFR) Solar Field Technology. When completed, the solar project will be able to produce clean energy to 5,000 homes annually and reduce 35,600 tons of carbon dioxide greenhouse gas emissions.

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