Bright day for Sun Cable after inking giant solar farm development deal

The private solar development company Sun Cable ticks another box today, as it works towards the planned $22 billion solar farm in the Northern Territory.
The post Bright day for Sun Cable after inking giant solar farm development deal appeared first on The Motley Fool Australia. –

solar power

Sun Cable is a private Australian solar energy infrastructure developer. The company’s ambitious flagship $22 billion solar farm project plans to supply Darwin and up to 20% of Singapore’s electricity demand, as reported by the ABC.

The Australia-ASEAN Power Link (AAPL) project is slated to be one of the world’s largest solar farms in the world.

Signed deal with the Northern Territory

The latest news for the company is the signing of a development agreement with the Northern Territory Government. This agreement was described by Sun Cable’s CEO David Griffin as a roadmap to the “financial close” portion of the project.

The AAPL project is still 3 years away from its deadline for financial close before the commencement of construction in late 2023. Following construction, the supply of power is expected for Darwin by 2026 and to Singapore in 2027.

Sun Cable is currently working with Singapore to reach a signed agreement, however, there are reportedly several non-negotiables on supply reliability that the company is working through.

As quoted by the ABC, Mr Griffin commented on the importance of electricity reliability to Singapore: “We have to ensure that our supply is at least equal to the level of reliability that they currently enjoy. We’re up to the challenge on that.”

In order to deliver power to Singapore, Sun Cable will need to lay 3,750 kilometres of undersea cable from the Darwin Harbour to Singapore.

Renewables demand set to increase

The new US President Joe Biden has already re-joined the Paris Climate Agreement and has a long list of planned initiatives for propelling the renewable energy front in the US. This focus on renewables is not an anomaly. Countries all around the world are seeking ways of becoming less reliant on traditional energy sources, whether for altruistic reasons or for more self-interested factors.

Only a couple of weeks ago we saw the meteoric rise of Vulcan Energy Resources Ltd (ASX: VUL) with its plans to deliver a net-zero carbon emission method for mining lithium. 

New Zealand based Meridian Energy Ltd (ASX: MEZ) is another company riding the renewable trend. Meridian is the largest electricity producer in New Zealand, and all of its supply is generated by renewable sources. The company’s shares are up 31% in the last year. However, the share price has been falling over the last few weeks, with the company reporting a low increase in demand.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Bright day for Sun Cable after inking giant solar farm development deal appeared first on The Motley Fool Australia.

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