en.Wedoany.com Reported - Australian renewable energy and storage developer Genex Power has significantly scaled down the first phase of its massive Bulli Creek solar cell and storage project and now plans to begin construction in 2028. The project, located in southern Queensland, has a total planned capacity of 2.5 GW.
The new first phase of the solar-storage project is set at 300 MW of solar photovoltaic capacity, paired with a co-located 425 MW / 1,700 MWh battery energy storage system, both to be built simultaneously, rather than starting the battery component midway through solar construction as originally planned. Genex CEO Craig Francis said last week that the company was forced to adjust its strategy after failing to convince equity investors that standalone solar modules could be competitive in the current wholesale market, which is flooded with daytime power.
Francis pointed out that negative wholesale electricity prices, the ongoing impact of rooftop solar as the largest generation source in the National Electricity Market, and the reality that solar projects now almost universally require batteries to shift power to the evening peak are all factors that cannot be ignored. While he believes the future proliferation of both large and small batteries will resolve this issue, the project currently has to be replanned. He noted that other stakeholders, such as banks, remain positive about the original plan.
Under the latest proposal, the first phase of the solar-storage project includes 300 MW of solar cells and a 425 MW/1,700 MWh battery, with subsequent phases likely to adopt similar configurations. Francis said, "Ultimately, what we are doing is optimizing the configuration to reduce costs." The original plan for the first phase's 775 MW of solar was to secure financial commitment by the end of 2025 and begin construction in 2026; the accompanying 400 MW/1,600 MWh battery was planned to start midway through construction. Now, the final investment decision, financial close, and construction are all tentatively set for 2028, as the project, although fully permitted, needs to re-complete the grid connection process.
Genex stated it remains committed to developing the full scale of the solar-storage project, which includes a 2 GW solar farm and a large battery of up to 600 MW/2,400 MWh. Francis acknowledged that the community is disappointed the first phase is not proceeding at its originally planned scale, a sentiment he shares. He stated, "We share that frustration... Against the market backdrop, the scale and configuration were probably a bit too large, so we had to scale it down." He pledged that the company still stands by all previously made community commitments.
The most critical of these commitments is the immediate release of funds for the reconstruction of the community centre in Millmerran. Genex has decoupled the $500,000 funding for the Domville Place community centre rebuild from the final investment decision, ensuring the funds are now available so construction can begin next year. The solar-storage project was acquired in 2022, and all government planning approvals are in place.
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