– Project Financial Close reached for Kidston Solar Project (Phase One 50MW)
– Approximately $100m project finance from Clean Energy Finance Corporation and Societe Generale
– Project Finance Equity and ARENA Funding in place to fund project development costs
– Project construction remains on target for first generation and cash flow by Q4 2017
Genex Power Limited is pleased to announce that it has successfully achieved Financial Close for its Kidston Solar Project Phase One 50MW (KSP1 or Project).
Project Financial Close
Genex has entered into a Debt Funding Arrangement for a total of approximately $100 million with Société Générale (Soc Gen) and the Clean Energy Finance Corporation (CEFC), finalising all necessary funding requirements for the Engineering, Construction and Procurement (EPC) and the Operation and Maintenance (O&M) costs of the Project.
The Project is the latest project to have received finance under the CEFC’s large-scale solar financing program, following CEFC’s recent $150 million commitment to three NSW projects (not Genex owned). Additional non-Genex CEFC-financed large-scale solar projects are nearing financial close, with the program on track to exceed its initial $250 million target.
CEFC Large-Scale Solar lead Gloria Chan said:
“The CEFC is delighted to be part of the Kidston Solar Project Phase One, with our tailored finance helping accelerate the construction and delivery of the 50MW large-scale solar farm on this unique site. Energy storage solutions such as pumped hydro are one of the next steps in our clean energy transition. With the cost of solar generation continuing to decline, we are committed to working with developers such as Genex to finance opportunities that can complement Australia’s growing renewable energy capacity, by adding energy storage and grid stability services.”
Financial Close for KSP1 occurs following Genex’s successful capital raise announced to the ASX on 03 February 2017.
Project Financial Close now ensures construction of the Project remains on track with first generation from the solar panels into the grid expected in Q4 2017 and practical completion in Q1 2018.
In addition to the debt and equity funding, Genex will also draw on $8.85 million of grant funding from the Australian Renewable Energy Agency (ARENA), provided through its Large-Scale Solar Competitive Round, for project development costs.
ARENA CEO Ivor Frischknecht said the Project would contribute towards ARENA’s vision for a smooth transition to a renewable energy future by increasing the reliability and security of renewable energy.
“Kidston holds the tantalising proposition of being Australia’s first large-scale solar project capable of delivering renewable energy into the grid around the clock. The plant could potentially contribute towards powering an adjacent 250MW pumped hydro storage plant Genex is developing with ARENA support. This would allow renewable energy to be stored through the day and delivered when needed most,” Mr Frischknecht said.
With Project construction underway for KSP1, Genex will turn to securing financial arrangements for its 250MW Kidston Pumped Storage Hydro Project, as well as the completion of technical feasibility studies for its 270MW Kidston Solar Project (Phase Two).
KSP1 will produce approximately 145,000MWh each year, providing enough energy to power 26,484 Australian homes entirely with renewable energy, offsetting 120,000t of CO2per annum, equivalent to removing up to 33,000 cars off Australian roads. Genex has entered into a 20-year Revenue Support Deed with the Queensland State Government, as part of its Solar 150 Program. The program guarantees a minimum energy floor price (refer ASX announcement 8 September 2016). All energy produced will be supplied directly into the National Electricity Market (NEM).