Genex Power has entered into an agreement to purchase the 50MW Jemalong Solar Project in central west NSW.
The project, located in Forbes, is well-advanced, with all necessary land and development planning approvals secured and significant progress made towards finalising the grid connection works.
“As a result of the strong revenues earnt to date from the Company’s 50MW Kidston Solar Project (KS1), we are able to utilise our cash reserves to diversify our project portfolio into NSW and create a stronger revenue pipeline,” Genex CEO James Harding said.
“The Kidston Stage Two Pumped Storage Hydro and Solar Project remains the principal focus of the company, and we continue to make significant progress towards finalising the remaining components necessary to achieve financial close.
“The Jemalong Solar Project offers a good opportunity to create a step change up in revenue and both expand and diversify the company’s portfolio as we complete the development of Stage 2 at Kidston.
“On behalf of Genex, we wish to thank the vendor, Vast Solar Pty Ltd, and their adviser, Energy Estate, for the progress to date on JSP and look forward to working with them to achieve the final conditions precedent necessary for financial close.”
The acquisition remains subject to a number of Conditions Precedent (CPs) including achieving satisfactory Generator Performance Standard (GPS) approvals from the Australian Electricity Market Operator (AEMO) for the project.
Under the terms of the acquisition, progression of the project’s development will continue, including finalising the grid connection negotiations with Essential Energy and AEMO.
Given the Project’s advanced status, Genex anticipates reaching financial close in H1 2019 following the completion of the Kidston Stage 2 project financing which remains the top priority.
The acquisition is contingent upon all CPs being met by the vendor by the end of February 2019.