The Macarthur Wind Farm will comprise 140 Vestas V112-3.0 megawatt (MW) wind turbine generators and be constructed by a Vestas/Leighton Contractors consortium. The wind farm will be situated near Hamilton, 260 kilometres west of Melbourne, in the Shire of Moyne.

Formally launched in August in Melbourne by the Premier of Victoria, the Hon. John Brumby MP, and the Minister for Climate Change, Energy Efficiency and Water, Senator the Hon. Penny Wong, the project is due for completion in early 2013.

Funding arrangements

AGL and Meridian will each fund 50 per cent of the capital cost of constructing the wind farm. AGL will fund its share of the cost and the costs associated with the construction of a substation at Tarrone from its existing balance sheet capacity. AGL will have 100 per cent ownership of the substation, which will enable the future development of a gas-fired power station.

“The joint venture between AGL and Meridian combines the considerable experience and complementary skill sets of the largest renewable developers in Australia and New Zealand. I have great confidence the partnership will deliver significant benefits for both parties,” said AGL CEO and Managing Director Michael Fraser.

AGL will acquire all of the wind farm’s energy output and renewable energy certificates.

“As a result of utilising Vestas’s new 3.0 MW V112 turbines, we have been able to increase the capacity of the wind farm while reducing the number of towers from 174 to 140. This reduces the environmental footprint of the project and achieves substantial operating cost savings in excess of $30million over the life of the wind farm.”

Reaching the RET

Mr Fraser said that the renewable energy from the Macarthur Wind Farm would make a significant contribution to delivering the expanded Renewable Energy Target (RET).

“The changes to the Renewable Energy Target scheme provided the investment certainty we needed to make Macarthur viable.”

According to AGL, the recent enhancements to the 2020 Renewable Energy Target (RET) scheme will require approximately 9,500 MW of new renewable generation capacity to be built this decade.

“The Macarthur Wind Farm is expected to be fully operational in 2013 at a time when it will be needed to meet the legislated demand for Renewable Energy Certificates under the RET scheme,” says AGL.

Broader benefits

AGL commissioned consultants Sinclair Knight Merz to undertake an Economic Impact Assessment to calculate the benefits of AGL’s wind energy activities in the region and more broadly. In terms of employment, at the peak of construction approximately 400 direct jobs and 800 indirect jobs will be generated.

There will be ongoing employment for about 30 full time staff for 25years following construction.

Direct construction expenditure in the region is estimated to be approximately $245million between 2010 and 2013, with regional construction expected to add about 1.5 percent to the Gross Regional Product in 2013.

AGL and Meridian will jointly establish a Macarthur Wind Farm Community Fund which will operate for the life of the wind farm.

Through the Community Fund, AGL and Meridian aim to bring positive benefits to the local community with grants that enable the broader community near the wind farm to participate in the benefits the project will bring.

AGL’s renewable portfolio

On completion, the Macarthur Wind Farm will augment AGL’s portfolio of renewable energy assets, which comprise about 30 percent of the company’s generation capacity. AGL is developing the Hallett group of wind farms in South Australia, with the Hallett 2 Wind Farm formally commissioned in April; Hallett 4 and 5 Wind Farms under construction; and Hallett 3 in development. AGL formally opened the 140 MW Bogong Hydro Power Station last November, the final stage of the 391 MW Kiewa scheme. This has brought AGL’s hydro generation capacity to almost 800 MW.

Last month, AGL commenced construction of the 63 MW Oaklands Hill wind farm which is located 5 km south of Glenthompson, also in western Victoria.

Meridian’s renewable portfolio

Meridian is New Zealand’s largest electricity generator and currently owns and operates nine hydro stations and three wind farms within New Zealand, and one wind farm in Australia.

Meridian’s wind portfolio:

• Te Apiti wind farm near Palmerston North
• White Hill wind farm in Southland
• West Wind farm in Wellington
• Mt Millar wind farm, Eyre Peninsula, South Australia.