The Australian state of Tasmania’s first large utility-scale solar photovoltaic (PV) project, the 288MW Northern Midlands solar farm, has signed an offtake agreement with Hydro Tasmania.

State-owned utility Hydro Tasmania has committed to purchasing 100% of the energy generated by the A$500m (US$325m) plant being developed near the city of Launceston.

TasRex, the developer behind the project, has also entered a partnership with Birdwood Energy, an Australian specialist investment manager that will support the development, funding and delivery of the solar PV power plant, as reported by PVTech.org.

Spanning 600 hectares, the site will be equipped with 670,000 solar PV modules.

Tasmania Minister for Energy and Renewables Nick Duigan stated: “This is a significant project that will diversify our state’s renewable energy generation mix and support job creation and economic growth in the local community during construction and once commissioned.

“Our government’s 2030 Strong Plan commits to a Tasmania First energy policy that creates the energy Tasmania needs for our future, while keeping power prices as low as possible for Tasmanians. We are delivering on this policy.”

According to TasRex CEO Bess Clark, the project is on track for completion by 2027 with local government development approval secured in December 2023 and technical studies underway.

Construction will commence in 2026, contingent upon finalising landowner agreements, detailed design processes, contractor selection, transmission network connection arrangements and financial planning.

370 jobs will be created throughout the solar farm’s construction phase.

Northern Midlands will have Tasmania’s fourth-largest generation capacity. It follows behind the Gordon (450MW) and Poatina (313MW) hydropower stations and the Tamar Valley power station, a 388MW gas-fired plant.

TasRex CEO Bess Clark stated: “This transformative project redefines the possibilities for solar energy development in Tasmania and is an important step towards the Tasmanian government’s 200% renewable energy target.

“TasRex is excited about the benefits this project will bring to Tasmania, enabling more local clean energy and supporting local jobs for decades to come”.