Energy giant Origin Energy has significantly expanded its pipeline of wind and solar projects, with the purchase of Walcha Energy, which has been developing the Ruby Hills wind project and the Salisbury solar project.
Both projects are located in the heart of the New England Renewable Energy Zone, where National MP Barnaby Joyce has been leading a ferocious campaign against the technologies, and follows the purchase last July of nearby ‘Warrane’ property which could host a significant wind project.
The purchase also comes at a critical time for Origin as it continues talks with the NSW government about the future of its major generation asset, the 2.88 GW Earring coal generator in NSW, which is the biggest in Australia.
Origin has said the coal generator is scheduled to close in August next year, but there is a growing expectation that at least some units will be kept in production for at least another two summers, possibly with significant state government support.
Origin has been criticised for doing little to build new renewables and storage capacity to fill the Eraring gap, and its shareholders late last year rejected a $20 billion bid led by Canada’s Brookfield that looked to more than treble the company’s planned investment in wind and solar over the coming decade from 4GW to 14GW.
The company last week flagged that it was looking at boosting its pipeline of projects to its targeted 4GW by 2030, although it also suggested that these would ultimately be held “off balance sheet”, meaning they would be sold to a third party and contracted before or after construction.
The Salisbury solar project near Uralla proposes two separate solar farms totalling 700 MW, while the Ruby Hills project proposes up to 150 turbines, according to its website, and is located close to Walcha.
Origin’s Head of Energy Supply and Operations, Greg Jarvis said the acquisition of Walcha Energy is consistent with Origin’s ambition to “lead” the energy transition, and to accelerate renewables and storage in its portfolio.
“Through Walcha and the earlier acquisition of the ‘Warrane’ property, Origin’s portfolio now includes several projects with promising wind and solar resources within the New England REZ, close to recently published transmission line investigation routes,” he said in a statement.
“We look forward to building on the work already completed on these renewables projects, bringing Origin’s scale, expertise and track record in developing and operating large scale energy and resource projects across Australia.
“We’re committed to keeping the community informed and updated about our plans and will work closely with host landholders, councils, traditional owners, and key community stakeholders as we progress these development projects through the approval stages and beyond.
“We plan to add to the strong local presence Walcha Energy have had in the New England region for over a decade and will continue with the shop front presence in Walcha.
Origin says its immediate focus will be on engaging with landowners and the local community, as well as completing the technical studies required for a scoping report which will inform a future Environmental Impact Statement (EIS).
Some communities have voiced opposition to wind farms, citing visual impacts, reduction in agriculture and concerns about health impacts. Conservative politicians have been ferocious in their opposition, describing renewable technologies as a “scam.”
Origin’s advantage at Warren is that it purchased the property – around 18 kms north-west of Armidale – outright, and intends to maintain and manage the property as an ongoing agricultural operation as it develops what will be known as the Northern Tablelands Wind Farm.
The proposed Salisbury Solar Farm is around 10km south of Uralla and the proposed Ruby Hills Wind Farm is 10km west of Walcha, in the southern part of the New England REZ.
Walcha Energy was developed by MirusWind and Energy Estate. It also included the Dungowan Dam pumped hydro project, but it is not immediately clear if that is part of the transaction.
Luke Panchal, the head of commercial and transactions at Energy Estate said in a statement: “Given the nature of Walcha Energy being a portfolio with numerous stakeholders, selecting the right subsequent owner that can successfully steward the projects through their next phase is critical.
” We ultimately went ahead with Origin as a company whose renewable development ambitions are aligned to ours.”
