The Hornsdale Wind Farm project – located 90km south-east of Port Augusta, South Australia – has reached financial close on Wednesday. The project has secured the ACT feed-in-tariff, a 20-year contract of $92/MWh in the first round of wind auctions and is considered by many to be the “best” greenfield wind energy project in Australia.
Hornsdale engaged Corality to develop the financial model for stage one – 100MW, with 170MW planned for stage two - of the two part project. The model helped to secure 250 million Australian dollars of long-term debt financing package from KFW IPEX-Bank GmbH and Societe Generale, and signed contracts with Siemens for the supply of turbines and construction, long-term operations and maintenance of the project.
"Corality is proud to have been part of the project and transaction team that made this landmark renewable energy project possible. As financial modelling consultants, we understand the process and evolution of the project lifecycle and its ultimate crescendo to financial close. As a result, we are able to anticipate, remain reactive and respond to the project's needs from its early stages through to financial close." said Kon Kim, Associate Director at Corality.
ACT leads the way for Australian renewable energy
Stage one, 100MW of the Hornsdale Wind Farm will consist of 32 wind turbines and is being developed by French company Neoen and its Australian partner Megawatt Capital. “With the Federal Renewable Energy Target now secure till 2030, the opportunity exists for other governments and large power purchasers to follow the ACT’s example. The renewable energy industry is ready to deliver,” Megawatt Capital Investments’ Mark Schneider said.
Frank Woitiez, Neoen Australia Managing Director, confirmed that Hornsdale’s second stage is due to start construction later this year, taking the wind farm up to 270MW.
South Australian wind farm expected to be in operation in 2017
Stage one construction is set to begin immediately and is expected to generate around 250 jobs in the region, with Catcon and CPP confirmed as contractors. The South Australian wind farm is expected to be in operation in 2017 and, under the ACT feed-in tariff, it is expected to supply more than a quarter of Canberra’s total electricity supply.
Read more about the renewable energy project in this press release in the Renew Economy