THE federal government will provide A$37 million for two new electricity generation projects in the Top End, a 12-megawatt gas-fired power plant in Darwin and a 10MW solar and battery farm near Batchelor, 100 kilometres south of Darwin.
The government will provide Merricks Capital the funds via its Northern Australian Infrastructure Facility, taking the value of approved projects from the facility to $830 million.
The NAIF financing mechanism is provided at a fixed rate with interest rates and payback periods determined separately for each individual project.
"These new energy projects will help modernise Darwin's energy grid networks and reduce reliance on older and less efficient gas and diesel generators," resources minister Keith Pitt said in a statement.
He said the two projects would link up with existing transmission infrastructure between Darwin and Katherine, and will supply up to 90% of future electricity generation needs for the Northern Territory's largest energy retailer Rimfire.
The Hudson Creek power station and the Batchelor Solar and Battery Farm would create around 160 new jobs during the construction phase, according to the government.
Under the funding agreement, Merricks will also work with the Larrakia National Aboriginal Corporation to deliver a range of initiatives which the government said included cross-cultural awareness training to employees and contracts.
Source: Energy News Bulletin
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