North West Queensland renewable power facility Kennedy Park remains unconnected to the national energy grid as half-owner Windlab has gone into a trading halt and struggles with contractual disputes.
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The Canberra-based Windlab has told the ASX it will write down $12.43 million from its half-share of the Kennedy Park facility, 20km east of Hughenden.
"Management has identified uncertainty around the valuation of Windlab's investment in Kennedy, resulting from uncertainty over the project's completion date and ongoing dispute with the contractor," Windlab told the ASX.
The hybrid solar and wind operation has 12 wind turbines, 55,000 solar panels, and four megawatt hours of battery storage, designed to power 35,000 homes.
It was completed in early 2019, but is has yet to meet Australian Energy Market Operator standards so remains mostly idle.
In a statement the AEMO said it was "working closely" with WindLab and Energy Queensland to ensure that the agreed performance standards were met prior to approvals.
"AEMO's core responsibility is power system security, which includes the safe integration of all new generation into the broader power transmission system," they said.
Windlab told the ASX they would likely have to write off $10-20 million on their investment.
They are currently in a trade halt with investor Federation Asset Management hovering while they are also in legal dispute with site contractors Vestas Wind Systems and Quanta Services over responsibility for delays.
In February the parties agreed on a stand-still to resolve the matter "in good faith" and provide Kennedy Park "with certainty concerning the outstanding network system registration and commercial operation of the project".
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