Solar energy venture not so sunny for BP

Europe’s second-largest oil company, BP Plc. has plans to abandon a task receiving Australian government funding to build a solar power plant in New South Wales.

“We’ve indicated that we wish to leave the consortium and that we won’t be part of the new bid process,” Jamie Jardine, a Melbourne-based spokesman for BP, said by mobile phone today.

BP, Fotowatio Renewable Ventures and Pacific Hydro Pty, which received A$306.5 million last year to build the Moree solar farm, missed a December financing deadline. This prompted the government to reopen the competition to other companies, including AGL Energy Ltd.

Mike Petrucci, CEO of BP’s solar unit, told staff about the company’s decision to leave the global solar business due to it becoming profitable after 40 years. The increase in production by Chinese competitors has seen the industry face price pressures and oversupply.

BP and its partners in the proposed A$923 million solar photovoltaic plant had failed to sign power-supply agreements needed to advance with the project. The company said it was sticking with the Australian project, even after deciding to exit the business globally.

“In the past two weeks, we’ve worked with the consortium to refine and develop the proposal, and we believe the new consortium will be an effective one,” Jardine said today.

The Moree venture will be eligible to bid for the funds and have a chance to show it is “still the most meritorious project,” Australia’s Resources and Energy Minister Martin Ferguson said earlier this month. The government also invited TRUenergy Holdings Pty Ltd. and Suntech Power Holdings Co. to update their applications seeking solar grants.

According to Ferguson, the government expects to make a decision in the second quarter.

By Australian Solar Quotes

The Author

Darryn Van Hout

I developed an interest in the Australian energy and construction sectors more than a decade ago and have since closely followed the trends, technologies and developments shaping both industries. My involvement in the Australian solar market began in 2008, and over the years I have built strong connections with professionals, businesses and organisations across the construction, solar and renewable energy sectors in Australia and internationally. These connections include solar panel and inverter manufacturers, electrical and construction industry professionals, software developers creating tools to quote, monitor and manage solar power systems, and media organisations that closely follow developments across energy, construction and renewable technologies. Today, I continue to contribute as an industry advocate, author and commentator, sharing practical insights and information to help Australian consumers and businesses better understand solar power, energy technologies, construction-related developments and the changing Australian energy landscape.