The developer of a $60 million Mid West solar energy project for Synergy has axed the construction contract of failed engineering group RCR Tomlinson.

Bright Energy Investments said it had begun seeking replacement contractors and was confident that an expansion of the Greenough River solar farm would be finished in time for Synergy to meet a renewable energy target.

“Following a review of its contractual options and consultation with stakeholder and financial institutions, the BEI board has opted, with immediate effect, to terminate the principal contract,” a statement released yesterday said.

“Works on the expansion project were on schedule at the point of (RCR’s) administration, but site activities will remain suspended during the replacement process.

“Despite the current disruption, BEI remains extremely confident that the project will be completed in time for Synergy to meet its LRET obligations.”

Synergy is required to source up to an additional 300 megawatts of green power by 2020 as part of the Federal Government’s large-sale renewable energy target. Stage 2 of Greenough River will add 30MW to the 10MW solar farm. RCR had a target of completing the project by next June.

Synergy has a 19.9 per cent stake in BEI, whose main shareholders are Dutch Infrastructure Fund and union superannuation fund Cbus.

The State Government last year transferred the Greenough River project and three wind farms to BEI.

“BEI will now commence a process to identify and engage a replacement organisation or mix of organisations to complete the project, with the aim of minimising disruption to the project’s timeline,” yesterday’s statement said.

“Importantly, the long-term operation of the Greenough River solar farm will not be impacted as warranties and ongoing plant operations are not linked to RCR.”

While RCR’s administrators are looking to sell its businesses as a going concern, its troubled solar energy construction arm may be wound up.

The company failed in the wake of a $57 million writedown from a Queensland solar project.

Despite raising $100 million from investors, this month RCR’s bankers refused a plea for extra funds to service its solar contracts.

The company was working on nine solar farms at the time of its collapse.