Nov 13, 2019

Contract dispute and further delays for energy project

Contract dispute and further delays for energy project

Kennedy Energy Park developer Windlab says the renewable energy project is not expected to reach full commercial operations for another four or five months.

The project near Hughenden is now running 13 months late and is the subject of a contract dispute between Windlab and the EPC contractor (a joint venture between Vestas Wind Systems and Quanta Services).

While the project has been constructed and energised, Windlab says the EPC contractor has not been able to deliver ‘a fully-functioning, compliant generator performance standard (GPS) model’ as required by the Australian Energy Market Operator.

In a statement to the ASX, Windlab said it was seeking damages from the EPC contractors, while they in turn are seeking milestone payments for work it argues is not fully complete.

The dispute is set for adjudication under the Queensland Building Industry Fairness Act.

Jointly developed and owned by Windlab and Eurus Energy Holdings, the Kennedy Energy Park is described as the world’s first hybrid wind-solar-battery power plant.

It combines 43MW of wind turbines, 18MW of solar panels, and 4MWh of battery storage.