Origin Energy signs solar farm deal

Origin Energy signs solar farm deal

Origin Energy Ltd (ASX:ORG) has signed its first contract to buy electricity from an extensive solar project.

The company has signed a 15-year agreement to purchase all the production from a AU$164 million solar project constructed by a Spanish firm, Fotowatio Renewable Ventures, which is currently running in Moree, New South Wales.

The investment will assist Origin in meeting last year’s 2020 Renewable Energy Target law enactment.

According to the chief executive Rafael Benjumea of Fotowatio Renewable Ventures, the deal “demonstrates the stability that is starting to return to the Australian renewable energy market.”

Origin will purchase 100 per cent of the renewable energy certificates and electricity manufactured by the NSW solar farm. The project includes around 223,000 solar PV modules and is expected to generate enough power for 24,000 houses.

Frank Calabria, head of energy markets for Origin, said: “There has never been a better time for Origin to pursue large-scale solar opportunities.”

Origin has also applied to the Australian Renewable Energy Agency to ask to fund its own large-scale venture, a 200 MW project in Darling Downs, Queensland.