The Western Downs Green Power Hub, being developed by Neoen, will be a 460-megawatt solar farm that consists of approximately 1,545 hectares of solar panel fields and two 270-megawatt / 540-megawatt hour battery energy storage systems located in Queensland. It will connect to the State's main transmission network both directly and via battery storage.
Key Dates
| May 2020 | Contract Award |
| Jul 2020 | Construction Commencement |
| Oct 2020 | Financial Close |
| Dec 2024 | Expected Construction Completion |
Financing
| Debt Finance: | Syndicate |
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Neoen has completed debt financing for the project, retaining 100 per cent of the equity stake in Western Downs Green Power Hub. The Syndicate comprises seven lenders, including: Natixis, Société Générale, Sumitomo Mitsui Banking Corporation, MUFG Bank, NORD/LB, HSBC and Commonwealth Bank of Australia. |
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Procurement
| Procuring Agency: | Neoen, was responsible for appointing the Engineering, Procurement and Construction (EPC) contractor. |
| Successful Tenderer: | Sterling & Wilsons were appointed as the EPC contractor for the project. UGL were appointed to design and construct the two Battery Energy Storage Systems. |
| Related contracts: |
PROJECT HISTORY
| Jul 2018 | The project received planning approvals. |
| May 2020 | Neoen awarded the EPC contract for the project to Sterling & Wilson. The Queensland Government also announced that construction of the project would proceed after a Power Purchase Agreement (PPA) was signed between the Queensland Government's renewable energy agency CleanCo and Neoen. Under the PPA, CleanCo will purchase 320 megawatts of output from the Western Downs Green Power Hub. |
| Oct 2020 | Neoen completed debt financing for the project, retaining 100 per cent of the equity stake in Western Downs Green Power Hub. $600 million in debt will be provided by a syndicate of seven lenders. |
| Oct 2021 | The Queensland government announced that the project had been connected to the grid. |
| Dec 2022 | Neoen announced that construction had commenced for the Western Downs Battery and that the storage had increased from 170 MWh to 200 MWh. |
| Jul 2023 | The Queensland Government identified the Western Downs region as an in-flight Renewable Energy Zone (REZ) in its draft 2023 Queensland Renewable Energy Zone Roadmap. |
| Jul 2023 | UGL announced an extension of the Western Downs Battery project to 270 MW / 540 MWh, |
| Jun 2024 | Neoen announced that substation energisation had been completed, with the Hub expected to be operational by Q4 2024. |
| Aug 2024 | UGL announced they had been appointed to design and construct the second stage of the Western Downs Battery, comprising a 270 MW / 540 MWh BESS and the high voltage infrastructure to connect it to the grid. The BESS will consist of 140 Tesla Megapack 2XL units and is expected to commence operations in 2026. |
| Aug 2024 | AGL Energy announced the signing of a 10-year agreement with Neoen to virtually charge and discharge up to 200 MW / 400 MWh of the Western Downs Battery. |
Estimated Total Cost
(2020)
Sector
Energy
Procurement approach
Unconfirmed |
Location
Queensland |
Resources
Media releases
2020/05/06 - Project announcement2021/10/28 - Energy connection complete
2022/12/29 - Battery construction commencement
2023/07/31 - Contract award for battery extension
2024/06/05 - Substation energisation complete
2024/08/27 - AGL battery agreement
2024/08/27 - Stage Two BESS contract award
