AGL reaches financial close on 200MW Silverton Wind Farm

wind, Cleanco

AGL today announced that it has reached financial close on the sale of the 200 MW Silverton wind farm project in western New South Wales, to the Powering Australian Renewables Fund (PARF).

The Silverton Wind Farm is the first greenfield development under the PARF, a partnership between AGL, QIC and Future Fund for the development of approximately 1000MW of large-scale renewable energy projects.

It will be located in the Barrier Ranges of NSW, with its south-western boundary about five kilometres north of Silverton, and about 25km north-west of Broken Hill.

The $36 million sale includes AGL writing an offtake agreement with the Silverton wind farm. AGL expects to recognise approximately nil profit on sale from the transaction.

The acquisition includes AGL writing an offtake agreement with Silverton Wind Farm.

AGL’s bundled offtake price from Silverton Wind Farm will be $65/MWh (real) for an initial five year period.

“Reaching financial close on the Silverton wind farm is a major milestone for PARF,” AGL CEO Andy Vesey said.

“Silverton is the first new renewable project build offered to the Fund, following the sale of AGL’s already developed solar plants at Nyngan and Broken Hill in November 2016.”

On behalf of PARF, AGL will develop and manage approximately 1000MW of large-scale renewable energy infrastructure assets and projects.

AGL acquired the rights to develop the Silverton Wind Farm in April, 2012.

AGL, GE and CATCON join forces for the project

GE, in partnership with AGL and civil engineering construction company,CATCON, also announced today a major contract to develop and build the warm farm.

The 58 GE 3.4MW wind turbines will be the largest in Australia, with rotors spanning 130-metres.

Once operational the wind farm will generate approximately 780,000MWh of energy annually, enough to power more than 136,000 average Australian homes.

It is estimated that the project, located in western New South Wales, could generate up to 150 jobs during peak construction, many of which will be sourced from the local community.

“We are proud to be working in partnership with AGL and CATCON to implement world-leading renewable energy expertise on a project that will have a major impact on reducing Australia’s greenhouse gas emissions and accelerate the country towards its Renewable Energy Target,” GE Australia and New Zealand CEO Geoff Culbert said.

“Not only is this project innovative in its technology, but it’s also a clear demonstration of how an innovative financing structure can be used to unlock investment in large-scale renewable energy projects.”

The renewable energy produced by the Silverton Wind Farm will reduce Australia’s CO2 emissions by 655,000 tonnes annually, the equivalent of taking 192,000 cars off the road each year.

The wind farm is expected to be fully operational by mid-2018.