Genex Power Limited (ASX: GNX) reports that it has generated its first revenue from its Kidston Solar Stage 1 Project (KSI) in Queensland.
Electricity produced from the Project is now being transmitted into the National Electricity Market (NEM), while the company continues with its commissioning for the Project.
Commissioning is on target to be ompleted over the coming months, with electricity generation be be ramped – up until full capacity has been reached, at which point a 20-year Revenue Support Deed with the Queensland State Government will be initiated.
Genex’s Managing Director Michael Addison stated the Project has now transitioned from being technically operational to commercially active.
“This ground-breaking milestone marks the first earnings for the Project and for Genex as a company.
“This transition from a development company to generating operational cash flows will serve to strengthen our financial position as we seek to reach financial close for our Kidston Stage Two Projects in 2018.
The Federal Government, through the Australian Renewable Energy Agency, has provided $8.9 million in funding to support the construction of KS1, in addition to providing up to $9 million in funding to support the development of the Kidston Stage Two Projects.
The Queensland State Government has providing a 20-year revenue support deed for KS1 through the Solar 150 Program, and designating the Kidston Renewable Energy Hub as ‘Critical Infrastructure’ to the State.