Solar Project Dismantled: Taxpayer Funds Wasted?
- The DeGrussa solar and battery project, funded by ARENA, has been set for dismantling 7 years prior to its expected 25 year lifespan. Despite its premature end, Neoen is optimistic that its components can be repurposed, but questions remain about the financial return on the investment.
The world's largest solar and battery project, located in Western Australia and partially funded by federal taxpayers, is set to be dismantled in 2024, seven years before its expected 25 year lifespan. The DeGrussa solar and battery project was funded by the Australian Renewable Energy Agency (ARENA) and was designed to reduce diesel consumption and emissions for the copper mine that was its primary energy consumer. The mine's depletion of resources has rendered the project obsolete, prompting its decommissioning by its French owner, Neoen. ARENA continues to defend the investment, emphasizing the project's role in advancing renewable energy in mining operations. In spite of its premature end, Neoen is optimistic that the project components can still be repurposed. Questions have been raised, however, about the financial return on the investment, with criticism of the cost of emissions dodged compared to market prices for carbon credit units.
What Was the Financial Return on ARENA's Investment in the DeGrussa Project?
- ARENA's investment in the DeGrussa Project has yielded a return through the emissions saved through reduced diesel consumption and emissions.
- The project helped to establish a renewable energy system that could power the copper mine and served as a model for other off-grid mining operations.
- ARENA also reports that the project has helped to inform and shape the renewable energy policies of the Western Australian Government.
- Although the financial return on the investment has been questioned, ARENA maintains that the DeGrussa Project has yielded a significant social return, in terms of environmental improvements and advances in renewable energy technology.