Renewable energy and storage developer Genex Power has revealed that yields from its two operating solar farms have fallen back towards normal levels as it prepares to charge up its first big battery.
Genex last year benefited from windfall returns from its two 50MW solar farms – Kidston in Queensland’s north and Jemalong in the west of NSW – amid the energy crisis that soar wholesale prices soar into unprecedented territory.
But in the first quarter of 2023, the return per megawatt hour fell back below $100, to an average of $88/MWh at Kidston and to $107/MWh at Jemalong (where it also earns revenue from the sale of certificates).
This is down slightly from the December quarter, and less than half the $214/MWh it received from its solar output in the June quarter last year. The two solar farms operate on a “merchant” basis meaning they take the spot price on the market, rather than a fixed price contract.
Meanwhile, Genex says work on its first big battery, the 50MW, two hour (100MWh) facility at Bouldercombe in Queensland remains on schedule and within budget, and should be energised for the first time before the end of June.”
Key upcoming activities include energisation of the Powerlink substation and Megapack Units, which triggers the beginning of commissioning and hold point testing for the project,” the company said.
“Recent market volatility and the growing penetration of renewable generation continues to highlight the urgent need for storage.” Genex has signed what it says is a unique revenue sharing deal with Tesla, which is installing its battery technology and trading software at the site.
The flagship project in the Genex portfolio is the Kidston pumped hydro project, a 250MW, eight hour storage facility that is the first of its type built in Australia for decades, and the first of this scale built by private owners.
Genex says construction at the K2-Hydro Project continued to progress during the Quarter with key work focused on the commencement of the powerhouse cavern and excavation of the Main Access Tunnel as well as the Wises Dam which will be the upper reservoir. The bottom resevoir is the former open pit gold mine.
It says the project remains on schedule for “energisation” in the second half of calendar 2024. Meanwhile it expects to make a decision on the 258MW Kidston wind project later this year, and it is also working on the proposed 2GW battery and solar project at Bulli Creek that it now owns.
