AGL sells Australia’s largest PV plants to Powering Australian Renewables Fund

Facebook
Twitter
LinkedIn
Reddit
Email
Credit: AGL

Australian power firm AGL Energy (AGL) has sold its 102MW Nyngan and 53MW Broken Hill solar plants to the Powering Australian Renewables Fund (PARF) for AU$257 million (US$194 million).

In July, AGL partnered Australian investment manager QIC and its clients the Future Fund and the QIC Global Infrastructure Fund to create the PARF fund, which aims to fulfil up to 20% of Australia’s Renewable Energy Target (RET) for 2020.

To achieve this, the goal is to own AU$2-3 billion worth of large-scale renewable energy projects totalling more than 1GW in combined capacity.

The two solar farms represent the PARF scheme’s first ever acquisition. AGL is writing a long-term offtake agreement with the Nyngan and Broken Hill plants as part of the sale.

Westpac, NAB, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group and BNP Paribas have all acted as lenders to the transaction.

AGL managing director and chief executive Andy Vesey said: “We’re very encouraged by the level of interest and calibre of lenders wanting to get involved in the PARF. AGL created the Fund to help kick-start the investment deadlock in renewable projects by providing an innovative financing platform where like-minded organisations can share the investment risk over the medium- to long-term.

He added: “The PARF has acquired the Nyngan and Broken Hill solar plants as seed assets ahead of schedule and we’re confident of announcing the first new renewable project build ahead of our original March 2017 target as well.”

QIC and AGL plan to continue growing their renewable energy asset portfolio through their special PARF fund. AGL’s two planned wind farms in Silverton, New South Wales, and Coopers Gap, Queensland, are expected to be the next two projects offered to the Fund.

At the offset, AGL provided AU$200 million in equity funding to the PARF, while QIC provided AU$800 million on behalf of its clients.

In order for Australia to handle large amounts of renewables on the grid, Vesey said there may be a need for renewable projects “to contract with firm and flexible thermal plants to provide a ‘virtual power plant’ that is largely renewable, but also firm and can be called upon when needed.”

Read Next

September 21, 2022
A new consortium has been formed in Queensland with a MOU to build a green ammonia corridor between Australia and Korea.
PV Tech Premium
September 19, 2022
The proliferation of solar requires PV projects to adapt to their grid surroundings, which increasingly entails connecting alongside adjacent technologies, be it energy storage, other renewables or green hydrogen. Amid the growing threat of curtailment, Jules Scully looks at the rise of the ‘solar-plus’ market and the financial models underpinning it.
September 15, 2022
Declan Flanagan, former CEO of Orsted Onshore, has launched a renewables investment platform with an initial capital of US$100 million.
September 6, 2022
Spanish utility giant Iberdrola has committed to invest between €2-3 billion (US$1.99-2.99 billion) in renewables in Australia.
September 5, 2022
Naturgy has bought a large-scale hybrid solar-plus-storage project in development in Australia.
August 31, 2022
Inline solar cell measurement equipment specialist Aurora Solar Technologies (AST) has acquired PV equipment specialist BT Imaging for 63 million in common shares and over US$1.2 million in cash.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)