THE Australian Capital Territory (ACT) Government has thrown the embattled Ararat Wind Farm a major lifeline.
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The RES Australia project was one of three wind farms selected to receive a 20 year Feed in Tariff (FIT) as part of the ACT's highly competitive first ever wind energy reverse auction.
Chief Operating Officer of RES Australia, Matt Rebbeck said the company is excited to be selected by the ACT for the FIT and that it provides significant long term investor security.
"The award of the FIT clearly proves the Ararat Wind Farm to be an excellent and highly competitive project and will provide the ACT with long term value for money renewable electricity," he said.
"The ACT FIT provides the cornerstone required to give long term certainty to investors and allow us to progress the project.
"The ACT Government is taking a lead role in encouraging the use of renewable energy, making the ACT one of the top places in Australia for renewables research, development and investment."
The 75 turbine 80.5 megawatt Ararat Wind Farm has been developed by RES Australia at a feed-in tariff price of $87.00 per megawatt hour.
It is expected to deliver more than 230MW of clean, secure power and a range of commercial, community and employment benefits.
Canberra company Windlab will manage the farm from a new 'operations hub' in Canberra with a significant portion of the wind farm's total output to be contracted to the ACT.
RES Australia has been developing the project since 2006 but the Federal Government's review of the Renewable Energy Target (RET) meant plans to progress the project during 2013/2014 were put on hold.
Mr Rebbeck said the project will establish a local community fund which will inject up to $1.5m dollars in support of good causes over its lifetime and significant local opportunities and employment.
Ararat Rural City Mayor, Cr Paul Hooper said he welcomed the announcement, however he stopped short of saying the project was now guaranteed.
"I am cautiously optimistic, RES still has to lock in the financing of the wind farm... we're always in contact with RES and we'll be watching developments closely," he said.
National coordinator of the Australian Wind Alliance, Andrew Bray said the awarding of the FIT to the Ararat Wind Farm was fantastic news for Ararat.
"It's a ringing endorsement of the RES project that it has been able to deliver wind power at such a competitive price," he said.
"This announcement shows that wind energy can offer cheap emissions free power and provide jobs growth in regional areas like Ararat.
"We would love to see this lead the way for further projects around Ararat, however that will require the Federal Government to resolve its impasse around the RET."
Cr Hooper said despite the positive signs for the future of the Ararat Wind Farm, uncertainty surrounds other major wind farm projects across the region.
"This isn't just about Ararat Rural City, there is a lot of investment still at risk in the Pyrenees Shire and Northern Grampians Shire as well," he said.
Mr Bray said State and Territory governments need to step in and reflect the wishes of voters who want more renewable energy.
"If the Federal Government refuses to fix the problems with the RET there is an opportunity for the State Government to do so," he said.
"Outstanding support for wind energy in Ararat would have reassured the ACT government that this project was welcome."
ACT Environment Minister, Simon Corbell said the Ararat Wind Farm will deliver a range of benefits.
"This is not just about sourcing renewable energy; this project will secure Canberra as the renewable energy capital, providing jobs and economic benefits for all Canberrans," he said.
"The auction has also delivered low renewable energy prices and enough renewable energy to provide for about 33 percent of Canberra's electricity needs."
With construction to commence late this year, the Ararat Wind Farm is expected to be operational by 2017.