The Australian renewable energy company, CBD Energy, has secured a $220 million "in principle" power purchase agreement that will allow it to proceed with the development of a proposed 100 megawatt wind farm in the Southern Highlands of New South Wales.
This is believed to be the first power purchase agreement from a wind farm in Australia for more than two years with the exception of developments linked to desalination projects.
RES Southern Cross obtained approveal for the 61 turbine Taralga Wind Farm in 2007 but did not proceed. CBD Energy and its joint venture partners, China Datang Renewable Power and Baoding Tianwei Baobian Electric, acquired this project from RES and have now have agreement from Alinta and Neighbourhood Power to purchase the electricity produced by the wind farm. CBD expects to complete the project in 2013.
CBD’s Chinese partners are aiming to secure a third of all new wind power developments in Australia and are budgetting $8 billion to achieve this.
CBD is also purchasing the electricity distributor, Neighbourhood Power, from Alinta. This will give CBD its own electricity distribution channel allowing it to operate independently of the major utilities, such as Orign, AGL and TRUenergy.
Part of the funding for the $25 million prurchase of Neighbourhood Power is coming from CBD’s solar business in Italy, where it is installing around 5 megawatts of capacity a month.
CBD, through its eco.Kinetics subsidiary, has also secured a $300 million contract to build a 99 megawatt solar power plant in Thailand. The plant, in Chonburi province, will be among the world’s largest. The first 8 megawatt stage is scheduled for completion early next year.