The Moree Solar Farm consortium, comprising BP Solar, Fotowatio Renewable Ventures and Pacific Hydro, was unable to meet all of the required funding conditions, including the sourcing of a power purchase agreement, and has proposed substantial changes to the project that was originally selected in June 2011.

The Moree Solar Farm consortium was given until 15 December 2011 to meet financial close as a condition of the $306.5 million grant on offer from the Federal Government.

The Federal Government is now seeking updated applications from the Moree Solar Farm and the three other shortlisted PV projects from AGL, Infigen-Suntech and TRUenergy for reassessment by the independent Solar Flagships Council.

Federal Minister for Resources and Energy, Martin Ferguson, said this process provides the Moree project with the opportunity to demonstrate whether it is still the most meritorious project.

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Of the announcement, Chief Executive of the Australian Solar Energy Society, John Grimes, said: “This is a common sense decision from Minister Ferguson. The solar game has changed – the cost of solar panels has fallen dramatically and, separately, BP has made a global decision to exit the solar industry. Now is the time to re-test the market with shortlisted companies.”

Clean Energy Council acting Chief Executive Kane Thornton said: “This experience will ensure a pipeline of large scale solar projects can be developed faster and at lower cost."

A decision resulting from this process is expected in the second quarter of 2012.

The Federal Government has also extended the time to reach financial close for the only solar thermal project to be assessed viable by the Solar Flagships Council, the $1.2 billion 250 MW Solar Dawn solar thermal project.

Minister Ferguson said Solar Dawn remained the best value solar thermal project for the Solar Flagships Program and has given the solar thermal project near Chinchilla in Queensland until 30 June 2012 to reach financial close.