Wind Farm to Close as Cost of Repowering is Too High
Valley News
In what may be an early indicator of the future challenges facing Australia’s ageing wind farm fleet, renewable energy company Pacific Blue has announced that it will not repower the Codrington wind farm in Victoria due to prohibitive costs.
Commissioned in 2001, the 18.2-megawatt (MW) Codrington wind farm will be decommissioned by 2027. Despite being ideally positioned near Port Fairy in southwest Victoria to harness the powerful Southern Ocean winds, Pacific Blue has deemed the cost of repowering too great.
“At this stage, Pacific Blue is not pursuing a repowering option for Codrington, as the site’s grid connection would require significant upgrades and today’s turbine siting requirements would preclude the installation of latest generation turbines, resulting in a non-financially viable project,” a company spokesperson said.
Repowering a wind farm is not merely a matter of replacing old turbines with new ones. Codrington’s current turbines, designed in the 1990s, are rated at just 1.3 MW each, with a hub height of 50m and a blade tip height of 81m. Modern turbines, by contrast, are rated between 6 MW and 8 MW, with tip heights exceeding 200m.
These larger turbines require new foundations, new spacing configurations, and upgraded infrastructure to integrate the additional power into the grid. This means navigating complex regulatory approval processes and securing new grid connection agreements. The cost of replacing a single turbine today ranges between $3 million and $5 million, making the financial viability of repowering uncertain.
The closure of Codrington highlights a looming issue for Australia’s renewable energy sector: the high cost of maintaining and upgrading wind farms as they reach the end of their operational lifespan. Other ageing wind farms will face similar challenges, with increasing costs making repowering projects less viable.
Also nearing the end of its operational life is the neighbouring 30 MW Yambuk wind farm, commissioned in 2007. While Pacific Blue has yet to disclose its plans for Yambuk, the financial pressures suggest that decommissioning could be the most likely outcome.
The broader 195 MW Portland wind project, which includes four wind farms completed in 2011, may also face similar cost challenges in the near future. As more first-generation wind farms approach the end of their design life, Australia may soon witness a wave of closures, raising questions about the long-term sustainability of wind energy infrastructure.
Pacific Blue has begun discussions with the Moyne Shire Council, state authorities, and regulators regarding decommissioning plans. Under its operating permit, decommissioning must be completed within 12 months of Codrington ceasing operations. Community consultation will play a role in determining how the site will be rehabilitated and how much of the infrastructure can be recycled.
The impending closure of Codrington serves as a stark reminder of the hidden costs associated with renewable energy projects. As more wind farms reach the end of their service life, governments and investors will need to consider the economic realities of repowering, decommissioning, and replacing ageing infrastructure. Without long-term planning and substantial investment, the promise of wind energy could be overshadowed by its escalating lifecycle costs.
