Renewables giant Neoen has divested its Victorian renewable energy operating assets and development pipeline to the ASX-listed HMC Capital for $950 million.
The divestment forms part of the commitments made by Brookfield to obtain the regulatory approval from the Australian Competition and Consumer Commission (ACCC), which was needed for Brookfield to acquire a majority stake in Neoen from Impala and other Neoen shareholders.
Related article: ACCC won’t oppose Brookfield’s acquisition of Neoen
Brookfield has a controlling interest in AusNet, which owns and operates Victoria’s monopoly electricity transmission network and parts of the electricity distribution network. AusNet also has two battery energy storage systems and a further two development projects in Victoria.
The ACCC was concerned that Brookfield, through its control of AusNet, would be able to operate the Victorian transmission network to favour its own generation and storage assets and/or hinder rival generators or storage assets.
Neoen’s 652MW operating asset portfolio comprises Bulgana Green Power Hub (224MW), Numurkah Solar Farm (128MWp) and the Victorian Big Battery (300MW/450MWh)
The 2.8GW development pipeline includes over 1.5GW of wind and 1.3GW of battery storage.
The projects, at various stages of development, are Bulgana Battery Extension, Kentbruck Battery, Kentbruck Green Power Hub, Loy Yang Wind Farm, Moorabool Battery and Navarre Green Power Hub.
Post transaction, Neoen will have 3.7GW capacity of wind, solar and storage assets in operation or under construction in Australia, retaining its title as the country’s largest renewable energy company. Neoen has a robust development pipeline across the rest of Australia and is intending to reach 10GW in operation or under construction by 2030 in the country.
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Neoen Australia CEO Jean-Christophe Cheylus said, “We are extremely proud of the legacy of our Victorian portfolio—it represents a huge collective effort and a significant contribution to the State’s energy transition, and we remain deeply grateful for strong support of AEMO and the Victorian Government.
“We will continue to work diligently over the coming months with HMC Capital, and with our host landowners and project communities, to facilitate a smooth handover. And with renewed focus, we now redouble our efforts towards realising our ambition of 10GW in Australia by 2030.”
