Business energy retailer Flow Power has entered into a ten-year offtake agreement with renewable energy developer BayWa r.e. to purchase 48 megawatts (MW) from two of northern Victoria’s largest solar farms.
The 112MW Karadoc solar farm and 106MW Yatpool solar farm, which are owned and developed by BayWa r.e, will provide 20MW and 28MW respectively to power Flow Power’s corporate renewable power purchase agreements (PPAs).
Flow Power, which counts Olam Orchards, ANCA Machines, Australian Vintage and Pernod Ricard as clients, first introduced corporate renewable PPAs to the Australian market in 2017.
The agreement will enable a greater number of businesses to access low-cost wholesale renewable generation over a long-term period through Flow Power’s corporate renewable PPAs – a market benefitting from increasing year-on-year demand.
“The demand for corporate renewable PPAs is only growing. We’re excited to welcome Karadoc and Yatpool Solar Farm to our portfolio and are committed to this ever-growing sector of the energy market,” said Matthew van der Linden, Flow Power’s managing director.
“This agreement with BayWa r.e. brings us one step closer to locking in more low-cost power for businesses across Australia and is a critical step forward for Australia’s energy market. We believe that supporting the integration of Australia’s renewable projects is key to shaping the power market for a better future.”
At over 600 acres, the Yatpool project will be BayWa r.e.’s second largest solar farm in Australia. Expected to be completed in late 2019, it will take its projected renewable energy development close to 240 MW within just two years of entering the Australian renewable energy market.
Director of BayWa r.e., Daniel Parsons, said the signing of the PPA agreement was a major milestone in the development of the Yatpool solar farm. Parallel to its agreement with Flow Power, BayWa r.e. has signed the EPC contract with Melbourne-based renewable energy contractor Beon Energy Solutions, which will start construction in early 2019.
“PPAs are fundamental to the success of solar energy projects of this scale,” Parsons said.
“We’re very pleased to find a partner in Flow Power, who, in a restricted PPA market, will help us to bring renewable energy to businesses of all sizes across Australia.”
Beon Energy Solution’s general manager, Glen Thomson, said the construction of the solar farm would deliver significant local and state-wide benefits.
“Victoria is on the way to becoming a renewable energy powerhouse and we are pleased to be part of this transition,” Thomson said.
“The Yatpool solar farm project will create jobs, boost the local economy and support cleaner energy for homes and businesses. We will continue providing job and skill development opportunities in the region during the construction of this solar farm, as we did at Karadoc.”