Kiamal Solar Farm owner ‘steps in’ to manage works

THE French owner of the Kiamal Solar Farm project says it has “stepped in” to manage works at the site near Ouyen.

Renewable energy developer Total Eren made the announcement this week, days after a key Kiamal contractor said it would be leaving the Australian market having lost millions.

Greek company Ellaktor, whose Biosar Australia subsidiary was one of two lead contractors on the project, told investors it had lost 113.3 million euro, about $A191 million, “relating to photovoltaic projects abroad and mainly in Australia”.

Ellaktor said in a results presentation it had “completed the construction of these projects and is exiting these markets”.

The losses were blamed on “increased cost caused by defective supply materials, delays in the projects’ completion that have brought upon penalties, as well as increased demands by the legal and regulatory framework, especially with regards to the case of Australia”.

Total Eren’s announcement that it would step in did not refer to Ellaktor’s results or Biosar Australia’s financial position.

Instead, the decision was attributed to the coronavirus pandemic.

“Kiamal Solar Farm has been under construction by an EPC Consortium between Canadian Solar and Biosar Australia (“the EPC Contractor”) and today is substantially complete with all major equipment installed onsite,” a spokesperson said.

“To help mitigate the impacts of COVID-19 which has hindered the free movement of people internationally and interstate, the owners of Kiamal Solar Farm have temporarily stepped in to manage commissioning works on site with the assistance of Beon, a local Victorian-based electrical contractor.

“Once commissioned, full responsibility for the finalisation works at Kiamal Solar Farm will be handed back to the EPC Contractor, which remains responsible for the performance of the project, including having a primary role during its operations.”

Sunraysia Daily in February reported 26 Mallee businesses were listed as being owed a combined $290,000 by a subcontractor on the project who went into administration.

An administrator’s report for Rusca Bros. Services Pty Ltd claimed Biosar was “regularly late” in making payments — Ellaktor and Biosar did not respond to requests for comment.

Another subcontractor, Ozmac Solar Pty Ltd, was liquidated last October.

Kiamal will be Victoria’s largest solar farm once the 256 MW first stage is connected to the grid.

Constraints on the region’s solar farms, which had meant output was cut, were “provisionally lifted” by the Australian Energy Market Operator late last month.