UK fund in $ 300m solar farms deal
A MAJOR deal has been struck with a London- based hedge fund to deliver two Queensland solar farms with capital costs of more than $ 300 million.
Esco announced affiliates of Elliott Advisers would take 100 per cent of the Susan River solar farm, near Maryborough, and the Childers solar farm, near Bundaberg.
Both projects have now reached financial close but neither has an offtake agreement meaning the electricity generated will be sold into the spot market. Esco managing director Steve Rademaker said Elliott was prepared to fund the projects through to connection, entirely with equity. Esco will remain as asset managers under a long- term contract.
“It is clear that Australian merchant solar remains are an attractive opportunity for experienced investors,’’ he said.
“Esco looks forward to bringing jobs and growth to regional Australia through its extensive pipeline of highly advanced projects currently under development.”
Construction will start immedi- ately and be completed in nine months. Esco also initiated the 148 megawatt Ross River Solar Farm and struck a deal with infrastructure managers, Palisade Investment Partners, to become joint owners and project investors. Construction of that $ 225 million project is now under way near Townsville.
Adani Renewables also said yesterday it would start construction of more than 200 megawatts of solar projects this year.
Adani Renewables chief executive Jennifer Purdie said this year was looking promising as the company moved forward with significant projects based in Whyalla, South Australia, and Rugby Run near Moranbah, Queensland.
“We aim to develop, own and operate renewable energy assets, and we are proud to be developing a pipeline of projects here in Australia, with a goal to see 1500 megawatt of renewable energy added to the Australian grid by 2022,” she said.
“Adani believes that renewables make up a vital part of a balanced energy mix, and while they are not the full solution, they are certainly a part of the solution.”