Decmil Group has signed a memorandum of understanding (MoU) with Maoneng Australia for the construction of 250MW Sunraysia solar PV project near Balranald in New South Wales, Australia.

Under the terms of the MOU, Decmil and Maoneng will jointly work on early engineering design and finalization of an engineer procure construct (EPC) contract.

Estimated to value approximately $275m, the EPC contract is planned to be awarded by the end of March 2018.

However, the contract award is subject to agreement on commercial terms and the financial close of the project.

Decmil managing director and CEO Scott Criddle said: "Decmil is looking forward to partnering with Maoneng on the Sunraysia project. Both organizations bring together complimentary skills to successfully deliver this project to the Australian renewable energy market.

“Decmil has been building its capability in renewable energy in recent years, based on nearly 40 years of experience and expertise in regional engineering construction.”

The Sunraysia project represents a significant expansion of Decmil's presence as an EPC contractor in the renewable energy market.

Planned to use batteries to store energy to provide greater energy reliability, the project is expected to be one of the largest utility scale Solar PV power plants in Australia.

Decmil said that the use of batteries allows the solar farm to produce electricity not only during sunlight hours but also during periods of peak demand.

The solar farms will be equipped to generte approximately 530,000MWh of electricity annually

The Sunraysia project is Maoneng’s second major project in Australia, with the first being the Mugga Lane Solar Park, which was developed and built under the ACT Government’s Reverse Solar Auction.