Genex Power Limited has finalised its negotiations with Powerlink Queensland with regards to connection arrangements for the 250MW Kidston pumped sorage hydro project (K2-Hydro).
The special purpose vehicle incorporated to own and operate the project (Project SPV) has now executed a Generator Connection and Access Agreement (GCAA) with Powerlink, which has been the subject of extensive negotiation since the initial announcement of the Queensland Government co-contribution of funding for the Transmission Line in September 2019.
The GCAA provides for the construction of a new single circuit 275kV transmission line from Kidston to a new switching station at Mt Fox, which will connect the Project to the National Electricity Market.
The terms of the GCAA provide for a total construction cost of $258M for the connection assets, which will be funded by way of: $111M from the Project SPV of; and $147M from the Queensland Government directly to Powerlink. The ongoing operations and maintenance charges will be payable by the Project SPV from its cash flows.
In addition to K2-Hydro, the connection assets will have spare capacity for the connection of other generation projects, including the Kidston Stage 3 Wind Project and Kidston Stage 2 Solar Project. To both support the terms of the GCAA for the Project and secure this important transmission infrastructure for the Kidston Clean Energy Hub, Genex has also executed a transmission Support Charges Deed (TSCD) with Powerlink. Under the TCSD, Genex will commit to support the balance of the operating costs of the connection assets while its other projects complete their development.
“Genex is delighted to have executed these agreements with Powerlink to connect the Kidston Pumped Storage Hydro Project to the National Electricity Market. This marks the culmination of a process of close cooperation and deep engagement which commenced four years ago, and which has resulted in an innovative commercial arrangement which will support not only our flagship pumped hydro project, but the broader Kidston Clean Energy Hub including the Kidston Stage 3 Wind Project and the Kidston Stage 2 Solar Project,” commented Genex CEO James Harding. “We would like to thank the Queensland Government for their support and we look forward to working together to deliver this exciting new piece of electricity infrastructure which, together with the pumped hydro project, will deliver over 800 new jobs in North Queensland.”