Solar problems intensify as the collapse of the RCR is causing connection delays.

Work has stopped on another major solar project affected by the collapse of the RCR engineering giant Tomlinson, as it became apparent that network connection delays and the impact on phased payments played a major role in cash flow problems of the company.

CPR – a major provider with annual revenues of about $ 2 billion – was handed over to a volunteer administration last week, after failing to attract more funds to solve short-term funding problems, just months after having collected $ 100 million major cost eruption in two Queensland solar farms.

RenewEconomy understands that the cash flow crisis was caused largely by the inability of project developers to obtain staggered payments, itself caused by network connection delays.

This is a problem that has affected the entire industry in one way or another – although some, such as Neoen Solar Park, Coleambally, have been able to connect in record time.

Delays were attributed to the stringent new connection requirements of the Australian energy market operator, the lack of resources of some network companies, the lack of resources from the key consultants needed to perform network modeling, and in some cases, lack of developer knowledge. themselves who did not anticipate the problems.

Workers were removed from five Queensland solar parks last week – Clermont, Emerald, Darling Downs, Collinsville and Haughton – as a result of the collapse of the RCR and the appointment of McGrathNicol as administrators .

Another major RCR project, the 30 MW expansion of Australia's first large-scale solar power plant in Greenough River, Western Australia, is worth $ 60 million. It is also interrupted when funding problems are resolved.

The construction of this site only started last month and should be completed by the middle of next year.

The spokesman for Australia's energy minister, Ben Wyatt, told The West Australian that the construction of the Greenough River extension for the Synergy utility had been suspended "under reservation of other decisions relating to the contract or to the advice of the administrator ".

Solar companies directly and indirectly affected by the collapse of CPR strive to understand the problems. A company, New Energy Solar, which recently bought the Manildra solar farm, built by RCR, said it wanted to understand the implications for "a small number of items" to complete.

McGrathNicol will hold meetings with creditors next Monday to take stock of the situation. On Monday, he provided a calendar of events and meetings with CPR management in the weeks leading up to the collapse, including the initial suspension of actions.

In August, CPR announced a $ 57 million increase in the $ 315-million contract for the construction of Daydream and Hayman solar power plants in Queensland, which forced it to enter the market to raise $ 100 million. additional dollars to reduce depleted liquidity.

The role of solar contracts – which probably total more than $ 1 billion – was downplayed during the second suspension in mid-November. But it now turns out that the problem was not so much the cost overrun as the connection delays that were widespread in the industry.

This resulted in the delay in the progress payments and RCR's cash was so tight – despite its billions of civil engineering contracts in mines, railways and other construction projects – that it was unable to Carry on.

The calendar provided by McGrathNicol provides a reference – from a meeting with management on November 5 – to a discussion on "Key Solar and Rail Projects and Their Impact on Cash Flow Projections". The company announced the resignation of its main finance office two days later. a commercial stop a week later. Ten days later, it was in the administration.

Connection problems do not only affect solar farms: wind and solar developers warned of network constraints in Victoria, forcing Total Eren to turn to costly synchronous condensers to ensure continued solar project Kiamal.

In northern Queensland, uncertainty over grid connections has resulted in the abandonment of a major financial partner of the planned 106 MW Lakeland wind farm. The developer Windlab said that the British investor InfraRed had resigned, citing "the inability to encrypt the risks badociated with the network connection", including the risk of network loss and reduction.

Windlab, which is also building the world's first wind solar battery project in Kennedy, said it was looking for alternative investors, but said the financial close would be postponed until early 2019.

Infigen Energy also announced last week that its Cherry Creek wind farm and many other projects have been delayed due to new connection standards, the need for multiple badessments, and the lack of skills of consulting firms to help companies to follow the process.

French renewable energy developer Neoen announced in September that it had submitted a $ 22 million claim to the manufacturer of three smaller solar power plants at NSW for construction and connection delays.