Antinuclear

The announcements are expected to trigger the biggest single investment surge in any renewable energy technology in Australia to date, even outpacing investment in rooftop solar at the height of the premium feed-in tariffs.

Apart from the projects set to go ahead directly from the ARENA tender, the results are also expected to trigger financing commitments for other large-scale solar projects, many of which are keen to cash in on high prices for renewable energy certificates, surging interest in financing from local and international funders, as well as another big slump in the cost of solar modules on international markets.

RenewEconomy understands that 12 of the 20 projects that made the final short list (out of 77 initial inquiries) will get some sort of funding.

The fact that more than half the projects will be helped by ARENA is not unexpected, given the huge reduction in the project costs elicited during the tendering process. It will mean that the ARENA funding round will produce around double the 200MW of large-scale solar capacity that it originally targeted.

It is thought that nine of these 12 projects will be using single axis tracking technology, which a recent study suggests – see our article Solar does work, and a lot better than we thought – provides the best outcome in terms of output and returns on investment.

The tender result is also expected to show that the levellised cost of energy for large-scale solar has fallen to around $100/MWh for the best projects, well below the $135/MWh targeted by ARENA when it started the process.

A lot of this cost reduction is credited to the competitive nature of the bidding process. Last week ARENA chairman Martijn Wilder told ABC Radio the process had knocked down the amount of assistance needed to 10 per cent of project costs from the near 50 per cent needed to get the Nyngan and Broken Hill solar farms built.

It also appears that large energy retailers – under pressure to meet their renewable energy targets,but lately on a capital strike – are prepared to offer around $80-$85/MWh for long-term contracts………..http://reneweconomy.com.au/2016/12-large-scale-solar-projects-to-get-arena-funding-and-the-winners-are-23169