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‘Innovative’ renewables project secures finance
A combined wind and solar project in north Queensland has secured finance through ARENA.
Tom Lodewyke
Firms: Allens (ARENA); Herbert Smith Freehills (Kennedy Energy Park Pty Ltd); King & Wood Mallesons (financiers)
Value: $18 million
Area: Projects, energy and resources; finance
Key players: The Allens team advising ARENA was led by partner Rob Watt (pictured), assisted by senior overseas practitioner Jamie Guthrie and lawyer Jessica O’Sullivan.
The Herbert Smith Freehills team advising Kennedy Energy Park Pty Ltd (KEP) was led by partner Gerard Pike and executive counsel Alison Dodd, who were supported by senior associates Rupert Baker, Caroline Rowe, Rhiannon Hough and solicitors Josh Attard, Dinisi Sirimanne, Erin MacMullin and Michael Thurin.
Deal significance: KEP secured grant funding through ARENA’s Advancing Renewables Program for Phase One of the Kennedy Energy Park in North Queensland.
The project will be a wind, solar and battery hybrid power station, comprising 15 megawatts from solar, 43.5 megawatts from wind and 2 megawatts of storage.
The project is a joint venture between Windlab Limited and Eurus Energy Holdings. It has received $93 million of senior debt from the Clean Energy Finance Corporation and an $18 million grant from ARENA.
It is supported by a 10-year offtake agreement with Queensland government subsidiary CS Energy, combined with merchant revenues and large-scale generation certificates.
Upon completion, the project will be able to power approximately 35,000 average homes, according to a statement from Allens. If Phase One is successful, Phase Two could provide up to 1,200 megawatts of energy for the region.
“We are pleased to have advised ARENA on its investment in this project, which will make a significant contribution to Australia's renewable energy future,” said Allens lead partner Rob Watt.
“In particular, the innovative combination of solar and wind with battery storage could be instrumental in improving Australia's system security by increasing the stability of the grid.”
Herbert Smith Freehills lead partner Gerard Pike said: “It is exciting to see an innovative large-scale renewable energy project like the Kennedy Energy Park enter construction. The use of battery storage along with co-sited wind and solar, will demonstrate that renewable energy can reach very high levels of availability in the face of criticism about a lack of ‘dispatchability’ of renewable generation. Congratulations to KEP, Eurus and Windlab on their vision and hard work in achieving financial close.”
Pictured: Allens partner Rob Watt
