Solar lease step forward for Shepparton

Greater Shepparton City Council has flagged its intention to enter into a lease with Goulburn Valley Community Energy on a $40 million solar farm for GV Link land south of Mooroopna.

The proposed lease would be for a 25-year term, with the option to extend the lease for an additional 25 years.

GVCE Mooroopna Solar Pty Ltd indicated to the council that the proposed solar farm would be able to generate up to 23 MW per year.

The lease is for the GV Link land east of Toolamba Rd and the railway line, for the purposes of construction and use as a solar farm, the council said.

Councillors this week voted to provide public notice of the council’s intention to enter into a lease agreement.

GVCE chief executive Geoff Lodge described the council’s decision of intention to lease the land as a ‘‘significant milestone’’ for the project.

‘‘They now need to advertise that; that’s a significant step for us.’’

Mr Lodge estimated the proposed facility would feature 62 000 panels across a 30 ha area.

He said it could provide enough electricity for 6500 homes at any one time and provide more than 100 construction jobs in building the facility.

A council statement said it had also been in receipt of a number of investment inquiries in relation to the leasing of land at the GV Link site. Council officers recognised an opportunity to make the GV Link land east of Toolamba Rd available for a large-scale solar farm, the statement continued.

Council chief executive Peter Harriott had last year been optimistic of the first sod being turned on the project last year.

More than six months later, the council had said while the tender process had been completed on the project, confidential negotiations were continuing.

‘‘A lease for the proposed solar farm at the GV Link site east of Toolamba Rd has now been negotiated and council is proposing to lease the land to GVCE Mooroopna Solar Pty Ltd, being a ‘Special Purpose Vehicle’ which consists of Goulburn Valley Community Energy Pty Ltd (GVCE) and AKUO Energy Pty Ltd,’’ a council statement read.

‘‘Council officers will now progress to the next stage of the process which consists of advertising council’s intention to enter into a proposed lease with the SPV.’’

An advertisement will be made, with public submissions invited for a month from January 4.

‘‘The proposed lease is subject to a number of conditions relating to the planning and development of the solar farm, which include but are not limited to: obtaining approvals and finance and entering into Power Purchase Agreements (PPAs) with relevant parties to purchase the electricity generated by the solar farm,’’ the statement continued.

‘‘The proposed lease would not commence until the SPV has received all approvals and secured PPAs and obtained the required finance for the project with a financial institution.’’

Mayor Kim O’Keeffe said the subject land east of Toolamba Rd had been set aside for water detention as part of the future GV Link project and council officers felt that the area north of the proposed water detention basin could be suitable for a solar farm.

The council had last year hoped the solar development would be capable of producing a minimum of 10 MW, and that the facility might help reverse uncertainty caused by extra energy costs estimated as being in the millions for some businesses.

At this week’s meeting, Cr Bruce Giovanetti said it was ‘‘really great this project is getting off the ground,’’ and that it had been in the works for ‘‘quite some time.’’

Mr Lodge anticipated about 12 months of detailed designing, including planning approvals, ahead of a further 12 months to construct the facility.

The principal terms of the lease endorsed by councillors include annual rental to be $30 000 plus GST, subject to CPI adjustments at regular intervals and a market review on exercise of the option.

Story from The Shepparton News - “Solar lease step forward.”

'Solar Solution' discussed at Shepparton round table event

If all goes to plan, GVCE chief executive Geoff Lodge said the facility could start being built in the second half of next year.

GV Community Energy's Geoff Lodge with
 GVCE board member, Terry Court (back).

Goulburn Valley Community Energy’s chief says the group is on the way to developing a 20 megawatt, $30 million solar farm for the Goulburn Valley.

But representatives stopped short of revealing where, as negotiations around lease and investment continue.

Mr Lodge unveiled some of the group’s plans when Shepparton hosted a northern Victorian new energy and technology round-table discussion.

‘‘We were announcing GV Community Energy is working on a solar farm,’’ he said this week.

‘‘We’re negotiating with a landowner. When negotiations are finished, we can announce where that solar farm will be.’’

Mr Lodge said battery storage had been planned for the facility, which was to take up about 40 ha of land.

The project had been about four years in the making and the round-table was a chance to provide some detail about the project, he said.

‘‘We’ve got multiple discussions going on with landowners to finalise a lease, and then we’re also having discussions with investors.’’

The group would be seeking large electricity users in the Goulburn Valley interested in buying the power generated.

‘‘We will be inviting local investors . . . to invest in the project.’’

Mr Lodge acknowledged Victorian Government funding for the group to work on a business plan ‘‘was pivotal in us being able to put in the bid’’ to develop the project.

Greater Shepparton City Council has recently been making efforts to develop a significant solar facility on Goulburn Valley Link land south of Mooroopna, while Moira Shire Council is moving ahead with a 100 MW solar farm for Wunghnu.

The large-scale solar farm proposal for Mooroopna was addressed during the confidential section of a recent council meeting, with one councillor questioning why the matter was behind closed doors.

Following an expressions of interest call to parties interested in developing a solar facility, the council moved to a limited tender process.

Thomas Moir’s story in today’s Shepparton News -“Solar Solution”.