On Thursday, AGL announced the deal with the Sunshine State wind farm on the $22 million sale of the project to the Powering Australian Renewables Fund has been finalised.
As Renew Economy reports, the deal includes AGL writing a PPA for electricity and related renewable energy certificates of less than $60 per megawatt hour for five years, with an alternative to prolong the agreement for another five years at the same, or even a lower, price.
AGL mentioned in a media statement that it anticipated the project to amount to approximately $850 million and funded by a combination of PARF partners’ equity and a group of lending firms which include Sumitomo Mitsui Banking Corporation, Westpac, Mitsubishi UFJ Financial Group, Societe Generale, Mizuho Bank, ABN Amro, and DBS Bank.
Following its first acquisition in November last year, AGL has handled to improve its portfolio by adding the 200-megawatts Silverton NSW wind farm in January this year.
Andy Vessey, the CEO of AGL, said, “More than 800 megawatts of projects have now been vended into PARF in its first 12 months of operation. The strong support we have received from our equity partners and lenders for these projects is a testament to the readiness of the private sector to invest in Australia’s energy transformation.”
However, Vessy admitted that public policy context remained important in order to maintain the momentum of the investors.
He added, “Certainty on energy policy, including the implementation of the recommendations of the Finkel Review, will enable more projects of this kind to go ahead and help place downward pressure on energy prices by increasing supply.”
To read the full report and to know what GE has to say regarding the project, visit this website.
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