AGL Energy and First Solar have been awarded the $130 million grant under the Federal Government’s Solar Flagships programme for the construction of large-scale, grid connected solar power stations.

The $450 million project is to be built across two sites in Broken Hill and Nyngan. The project will generate 159 megawatts of electricity – enough to power about 30,000 homes. It is due to be completed by the end of 2015.

Bidding for the project  was re-opened in February after the consortium behind the initial winner, the Moree Solar Farm, failed to meet a December deadline to secure financial backing.

Energy Minister Martin Ferguson said that all short-listed applicants, including the Moree Solar Farm, TRUenergy and Infigen-Suntech bids, were of “high merit” and would be referred to the new Australian Renewable Energy Agency for future funding consideration.