More financial restructure talks
THE SUNSHINE Renewable Energy Company, a subsidiary of the NSW Milling Co-operative, is continuing to work with banks to avoid going into receivership.
It was expected an announcement about receivership and the future of the co-generation plants at Condong and Broadwater would be made yesterday but instead the company said it was continuing to explore ways of financially restructuring.
The plants, which use sugarcane trash to generate electricity, lost $6 million in expected revenue when the value of Renewable Energy Certificates crashed last year.
The co-operative was relying on the sale of the certificates to ease the debt amassed from building the co-generation plants.
Last year, the value of the certificates fell from about $50 each to under $24 when the market became flooded with them after the Federal Government decided to subsidise domestic solar energy programs.
To meet operating costs, the co-operative was forced to sell its certificates during the crushing season when they were valued at between $28 and $30.
The Sunshine Renewable Energy Company built the plants in partnership with the NSW Government’s Delta Electricity.