SolarReserve LLC has entered into a long-term generation project agreement with the government of South Australia to construct the 150-MW Aurora solar thermal power station near the town of Port Augusta. The facility will also have 1,100 MWh or eight hours of energy storage capacity and will deliver power into the National Electricity Market.

"The Port Augusta story is a stark example of the transition of the South Australian economy, with the closure of a dirty coal fired power station, and now the commissioning of this world leading renewable energy project," South Australia Premier Jay Weatherill said in an Aug. 14 news release.

In contrast to a power purchase agreement, a generation project agreement is focused on the available capacity of the project during peak demand periods, according to the news release, instead of just the energy that can be delivered in kilowatt-hours.