Origin Signs Power Purchase Agreement with FRV
The Moree Solar Farm is expected to produce approximately 145 GWh of energy every year – sufficient to supply 24,000 Australian households.
The local integrated energy company Origin Energy (ASX:ORG) announced to the market that it has signed a power purchase agreement with Fotowatio Renewable Ventures (FRV) to purchase its entire output for 15 years.
According to the agreement, Origin will purchase 100% of the output from FRW’s recently commissioned 56 MW Moree Solar Farm for 15 years. This farm is equipped with around 223,000 solar tracking PV modules. It is expected to produce approximately 145 GWh of energy every year – sufficient to supply 24,000 Australian households.
Origin’s Chief Executive Officer of Energy Markets division, Mr. Frank Calabria stated that the company is committed to expand its renewable energy portfolio: “Origin was the world’s first energy company to adopt all seven We Mean Business coalition commitments on climate change. Solar technology has improved dramatically over the past few years over the past few years and the cost has come down as a result. There has never been a better time for Origin to pursue large-scale solar opportunities – and fulfil its aspiration to be one of Australia’s leading renewable energy companies.”
As per the contract, Origin will obtain 100 percent of the electricity generated and 100 percent of the resulting Renewable Energy Certificates (RECs) created from the Moree Solar Farm. The certificates will assist Origin to meet its obligations under the Federal Government’s Renewable Energy Target.
This agreement is Origin’s first local solar PPA in addition to the company’s nine existing offtake agreements with wind farms in south-eastern Australia.
Early Contractor Involvement Signed with RCR Limited
On the 21st of March, the company signed an Early Contractor Involvement contract with RCR Tomlinson Ltd (ASX:RCR) to procure design and engineering expertise for its solar farm located in Dalby, Queensland.
Origin aims to install solar infrastructure that will deliver up to 200 MW of generation capacity, and create up to a 200 Ha solar footprint.
Author: Kaivalya Kandarpa
Mar 31, 2016
Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.