The Federal government will invest $100 million in a controversial solar farm in southern NSW in what many have seen as a test case between renewable energy projects and food security.
There have been years of fierce community protest over the development of a $400m solar farm at Walla Walla, about 40km north of Albury.
Much of the debate has been over the loss of productive farming land during the 30-year life of the project.
The 300 megawatt solar farm will built on 605 hectares (1495 acres) of grazing/cropping leased from two supportive local farmers who will paid for the loss of the land.
The builders of NSW's third biggest solar farm, the international consortium FRV Service Australia, have other existing or planned renewable projects in South Australia, Victoria, NSW and Queensland.
The Clean Energy Finance Corporation this week announced it would provide $100 million in debt finance to support the project which will see the installation of 600,000 solar panels.
Energy Minister Chris Bowen said the solar farm would be the third biggest in NSW and able to supply more than 100,000 homes and firms.
"The government is working to ramp up renewable energy generation, and the Walla Walla Solar Farm will provide great opportunities for Riverina businesses and create 250 local jobs," Mr Bowen said.
Construction at the site is expected to start in the next three months with the solar farm to be operational by the end of 2024.
NSW planning authorities signed off on the project two years ago despite objections from neighbouring farmers and Greater Hume Shire Council.
A planning inquiry received 150 community submissions, 85 which opposed the project.
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CEFC chief executive Ian Learmonth said Australia needed to urgently roll out large-scale wind and solar projects like Walla Walla to meet its target of 82 per cent renewable power by the end of the decade.
"If Australia is to meet its new emissions reduction goals and renewable energy targets we must urgently set up our development of large-scale wind and solar," Mr Learmonth said.
"The CEFC has been a critical part of the sector for the past 10 years and will continue to support it in the next crucial decade."
The CEFC recently committed $175 million to the Golden Plains wind farm at Rokewood in western Victoria between Geelong and Ballarat, slated to be the biggest wind farm in Australia.
The $2 billion WestWind Energy development will include 122 wind turbines and is expected to start producing power in the first quarter of 2025.
The wind farm has planning approval for up to 228 turbines, with a current design comprising 215 turbines across 16,739ha (41,363 acres).
When two planned stages of the wind farm are complete, the 1300 megawatt project will provide green electricity to more than 750,000 households, the equivalent of every home in regional Victoria.
Planners say there is already ample proof wind farms can coexist with agriculture.
At Walla Walla, the project's proponents have suggested sheep grazing could continue at a lesser level around the solar panels.
The land is currently used for sheep and cattle grazing with irregular canola and wheat crops.
A planning inquiry in 2020 heard the land is owned by two farmers who had agreed to lease part of their properties for the next 30 years in a commercial decision.
"After the period of operation of the solar farm the land will be reinstated so that farming can recommence over the land. The production capability of neighbouring properties would not be impacted," the inquiry was told.
FRV acknowledged there had been opposition to the solar farm from "some neighbours", but broader community support for renewable energy projects was strong, with 83pc of the NSW community wanting more renewable energy.
FRV Australia, owned by Abdul Latif Jameel Energy and Canadian pension fund OMERS, has developed 10 solar farms in Australia, including five in NSW, with a total power capacity of one gigawatt.
FRV Australia has already signed a 15-year power purchase agreement with Microsoft to provide renewable energy from Walla Walla solar farm to its data centres in Australia.
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Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
