Fotowatio Renewable Ventures, BP Plc (BP/)'s partner in an Australian solar-power project that was awarded A$306.5 million ($324 million) in government funding, said it is considering additional ventures in the country.
"We don't see this as the only opportunity in Australia," Javier Huergo, Fotowatio's head of business development, said by phone today from Sydney. "We think this will demonstrate solar can become an important part of the generation mix and will be ready for the moment when there's a stable political framework that permits developers to make long-term decisions."
Madrid-based Fotowatio, BP and Pacific Hydro Pty won funding to construct a 150-megawatt solar plant in the state of New South Wales, the Australian government said on June 18. The companies plan to build one of the world's largest plants using photovoltaic panels to turn sunlight into power, Huergo said.
Australia, which has set a target of generating 20 percent of its power from renewable energy sources by 2020, also said it would provide A$464 million to a solar project in Queensland led by a unit of Paris-based Areva SA. That venture proposes a 250- megawatt solar thermal and gas hybrid power plant, according to the statement released by Prime Minister Julia Gillard's office.
Fotowatio and BP aim to begin construction of the 150- megawatt venture in the first quarter of 2012 and to have the plant fully operating by the end of 2015, Huergo said. Fotowatio, which plans to keep more than 50 percent of the project, expects partial commissioning before the end of 2015, he said.
Utilities Talks
The venture is in "advanced talks with some of the major utilities" over the supply of power from the plant, he said. The partners will also rely on debt, plus A$120 million of funding from the New South Wales government, Huergo said.
The Fotowatio-BP development is estimated to cost A$923 million, the Australian government said. Construction expenses are expected to be A$600 million to A$700 million, Huergo said.
BNP Paribas SA, Banco Santander SA and National Australia Bank Ltd. (NAB) are among eight banks that agreed to help finance the New South Wales solar venture, Huergo said in February. Fotowatio has a total of about 275 megawatts of solar power capacity in operation and under construction, he said today.
Fotowatio plans to add solar capacity in Australia if the government maintains stable policy to stimulate development of renewable energy technologies, he said. "The goal is a sustainable long-term solar industry in Australia and to show Australian citizens that solar is reliable," he said.
Gillard wants to impose a price on carbon emissions starting next year to curb greenhouse gas pollution in a country that burns coal to generate more than 80 percent of electricity.
Together, the two solar projects getting Australian funds are expected to produce enough power to provide electricity to more than 115,000 homes a year, the government said.
