THE BOURSE WHISPERER: Red Sky Energy (ASX: ROG) has been granted an updated Development Approval for the company’s proposed solar power project in Dubbo, in New South Wales.
Red Sky acquired solar energy company, SOLEIR, in November last year, which is a developer of utility scale photovoltaic solar power projects with its first project located for the major regional city of Dubbo.
According to Red Sky Energy the first phase of the project is on schedule to be in operation by 30th June 2013.
SOLEIR had previously secured development approval for a 2 megawatt (MW) project at Dubbo.
Following an expanded and revised design and configuration of the project, an updated development approval was sought for a 2.5MW size project that has now been granted.
SOLEIR has a 30 year lease over a 24.9 hectares project site from the Dubbo City Council, of which the 2.5MW project only requires five hectares.
The site could potentially accommodate an expanded project, of up to 12 MW.
Aerial view of Dubbo with project site highlighted. Source: Company announcement
“The feasibility study for the Dubbo project is currently underway and is progressing well,” Red Sky Energy said in its ASX announcement.
“Detailed electrical and structural design is nearing completion, grid connection studies (based on data from grid owner Essential Energy) have commenced and quotations have been received for the supply of PV panels and inverters.
“The feasibility study is expected to be completed by mid-March, and the project’s capital cost estimate will also be finalised at that time.”
Red Sky outlined SOLEIR’s business model as being to progressively develop and partially own a number of significant size, cost effective photovoltaic solar energy power projects, which are cost competitive with large scale wind projects.