The New South Wales (NSW) government has signed a contract with the Australian arm of French renewable energy developer Neoen for the purchase of green energy certificates from the 24MW Dubbo Solar farm.

The contract for the purchase of Large-scale Generation Certificates (LGCs), starting 1 July 2019 and expiring of 31 December 2030, will meet 15.6% of the government’s obligations under the Renewable Energy Target (RET).

The project, which is split across two plants in Narromine (9MW) and South Keswick (15MW), won a share of  Neoen’s AU$34.9 million (US$26 million) grant funding from the Australian Renewable Energy Agency’s (ARENA) large-scale solar funding round last year.

Minister for energy and utilities Don Harwin said: ”ARENA’s funding for projects like this one and others in Glen Innes, Griffith, Parkes and Manildra highlights the growing importance of the NSW solar industry’s role in ensuring we have secure, sustainable and affordable energy,”

Harwin said the government was showing leadership using its “significant purchasing power” to deliver more renewable energy in the state, while the deal would support jobs, boost energy security, and lay the foundation for similar deals in the future that would “put more downward pressure on prices”.

Member for Dubbo Troy Grant added: “This project brings with it 175 jobs throughout the construction phase here in Dubbo, a fantastic boost for our local economy.”

A government release claimed that NSW leads Australia in large-scale solar, with three of the country’s largest operating solar farms and a further seven under construction. Meanwhile, what it claimed to be the largest solar project in the Southern Hemisphere is expected to commence construction at Balranald, in the state’s Riverina region early next year.

Neoen and Tesla recently finished a 129MWh energy storage system in South Australia,which is connected to a Neoen wind farm.

Neoen was also recently awarded a 377MW(AC) solar PV project in Mexico’s third renewable energy auction.