QIC in AU$1 billion renewable energy partnership with AGL in Australia

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
As part of the partnership plans QIC will acquire the two largest operational solar plants in Australia, Nyngan (102MW) and Broken Hill (52MW) in New South Wales. Credit: First Solar

Australian investment manager QIC is to invest AU$800 million (US$598 million) and power firm AGL is to provide AU$200 million of cornerstone equity for a major partnership in the development of large-scale renewable energy infrastructure in Australia.

QIC’s offering comes on behalf of its clients the Future Fund and those invested in the QIC Global Infrastructure Fund (QGIF). The investment will go towards the Powering Australian Renewables Fund (PARF), which aims to fulfil a significant part of Australia’s Renewable Energy Target (RET) for 2020.

PARF aims to own AU$2-3 billion worth of large-scale renewable energy projects totalling more than 1GW in combined capacity. A QIC release said this will account for around 10% of Australia's renewable energy capacity once fully invested; the equivalent to powering more than 500,000 homes.

QIC will begin by acquiring the two largest operational solar plants in Australia, Nyngan (102MW) and Broken Hill (52MW) in New South Wales (NSW), which were commissioned by AGL and First Solar in 2015. It will then work with AGL to develop further projects to build out a diversified portfolio in Australia.

Two new major wind generation projects in Queensland and NSW, have also been identified for development in 2017/18.

QIC chief executive Damien Frawley said this was a “first of a kind” partnership between institutional capital and a key energy industry entity such as AGL.

Ross Israel, QIC's head of global infrastructure, said: “Development of renewables infrastructure has previously been risky for institutional capital. Barriers to investment included policy uncertainty, the resulting pricing fluctuations and the difficulty for industry participants and institutional investors alike to finding partners with both the expertise and the capital to work across the whole renewables value chain.

“In partnership, QIC and AGL are able to develop, own and manage both existing (brownfield) and new (greenfield) renewable assets, while establishing a governance framework to derisk the investment.”

Read Next

May 13, 2021
Solar developer Lightsource BP has been granted planning approval to develop a 400MWdc solar farm in New South Wales Australia.
May 11, 2021
The clean energy council has slammed the Australian government’s latest federal budget as “disappointing” for not placing more onus on expanding the country’s renewable energy capacity.
May 5, 2021
The Australian Renewable Energy Agency (ARENA) has selected three commercial-scale green hydrogen projects that will share in AU$103 million (US$79.7 million) of funding to support their development.
May 4, 2021
Canada-based renewables company Amp Energy will a develop portfolio of large-scale PV projects and battery energy storage systems as part of an AU$2 billion (US$1.55 billion) hub in South Australia.
April 21, 2021
Australia’s airports have untapped potential to aid the country’s transition to renewable energy, according to a report from researchers at Melbourne’s RMIT University.
April 20, 2021
A solar- and wind-powered green hydrogen plant in Western Australia has secured the backing of France-based independent power producer Total Eren.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021