The CEFC has announced its largest investment in Tasmania, with a $59 million commitment to the Granville Harbour Wind Farm.
The 112MW wind farm is located on a 1200ha cattle farm on Tasmania’s west coast and is expected to deliver a one-third increase in Tasmania’s wind capacity.
Construction is underway and, once operational, the $280 million development is expected to generate enough electricity to power more than 46,000 homes.
“This is the CEFC’s largest investment in Tasmania, and our first in a Tasmanian wind project,” CEFC chief executive officer Ian Learmonth said.
“Tasmania has a great track record in renewable energy through its investment in hydro resources.
“We’re excited to be involved in a project that will further diversify the Tasmania’s clean energy to include more wind, while helping Tasmania achieve its target of 100 per cent renewable energy by 2022.”
The CEFC has already invested more than $16.4 million in Tasmanian-based clean energy projects.
CEFC wind sector lead Andrew Gardner said the Granville Harbour Wind Farm is part of an increasing focus on greenfield wind energy projects in Tasmania.
“This project will create regional employment opportunities both during and after construction,” Mr Gardner said.
“It will also deliver ongoing benefits through community investment funds and associated improvements in local infrastructure.
“Nationally, we have now invested more than $760 million in 11 wind projects, delivering a combined capacity of more than 1.76GW of new clean energy.
“Wind remains the most cost effective new clean energy source, with projects like Granville Harbour Wind Farm benefiting from a strong wind resource and ongoing wind turbine technology improvements to better harness the resource.”
Wind currently contributes only 10 per cent of Tasmania’s renewable energy capacity, despite the state generating 90 per cent of its overall energy from renewables.
The Granville Harbour Wind Farm has a long-term power purchase agreement (PPA) with Hydro Tasmania.
The wind farm is owned by Palisade Investment Partners on behalf of its clients.
The CEFC finance for the project includes $25 million in direct equity, alongside $34 million in additional equity via the Palisade Renewable Energy Fund (PREF).
“We are delighted to have the CEFC commit to this project as one of Palisade’s key clients, which sends a positive signal to institutional investors about the potential of renewable energy investment,” Palisade managing director and CEO Roger Lloyd said.
The CEFC has allocated $100 million to the Palisade renewable investment strategy, in addition to its $75 million cornerstone commitment to PREF.