Genex Power has announced it has finalised its offtake arrangements for the 250MW Kidston Pumped Storage Hydro Project with the signing of a binding Energy Storage Services Agreement (ESSA) with EnergyAustralia.
The key terms of the agreement are:
- A term of up to 30 years, with an initial term of 10 years and two options (at EnergyAustralia’s election) to extend for a further 10 years each;
- Genex will provide the full operational dispatch rights for the K2-Hydro plant (including P&L responsibility) to EnergyAustralia in exchange for a fixed annual rental payment, escalating over the total term;
- Following the expiry of the full 30-year term and therefore conditional on the exercise of the Extension Options, EnergyAustralia shall have the right to acquire Genex’s shareholding in the Project for a fixed cash payment; and
- The ESSA is subject to a number of conditions precedent, including achieving financial close for the Project, which must be satisfied prior to the financial close sunset date of December 31, 2020.
Genex says it remains deeply engaged with the other project stakeholders, including the Northern Australia Infrastructure Facility (NAIF) to complete the restructuring of the project financing on the basis of the agreed terms of the ESSA. Following this announcement, and subject to agreeing suitable terms with NAIF and Queensland Government, Genex is now seeking to reach financial close on the project in the third quarter of the 2020 calendar year.