DP Energy has appointed EY and Baker & McKenzie as their financial and legal advisors on their hybrid wind and solar Port Augusta Renewable Energy Park in South Australia.
The 375 MW project received Development Approval from the South Australian Government in early August. When fully commissioned, it will generate approximately 1,000 GWh of clean renewable energy directly into the national electricity grid per year, enough to power about 200,000 homes and save 470,000 tonnes of carbon dioxide emissions each year. Located near the former Northern Power Station, the project will create much-needed employment in the energy sector for the Port Augusta region.
The project CAPEX is estimated to be approximately AUD700 million (US$537 million).
The project’s added significance turns on its unique generation profile: the wind resource (installed capacity 200 MW) is primarily driven by the temperature difference between the land and sea rather than by weather systems, and hence exhibits a regular early evening peak which is well aligned with the daily peak demand for electricity.
This effect is also strongest in the summer when temperature differences are at their greatest, meaning that annual energy generation also peaks when it is most needed. When this evening wind generation temperature effect is coupled with large-scale solar generation (175 MW – which has a midday peak) a good match to overall demand can be achieved thereby supporting the electricity network and placing downward pressure on wholesale prices.
Andrew Smith, Chief Investment Officer, DP Energy, said:
“Making these appointments is a crucial step towards achieving our objective of financial close by the end of Q1 2017. Both of these businesses bring the right skill set to help us deliver this ground breaking project to the Australian marketplace.”
Matt Rennie, EY’s Global Head of Transactions in Power & Utilities, said:
“EY is pleased to be supporting DP Energy on its expansion into Australia. Our team brings deep international expertise in renewables and our leading Australian renewable energy practice together to progress the Port Augusta Renewable Energy Park to financial close. The characteristics of this hybrid renewable energy solution has the potential to deliver a range of benefits to the South Australian market.”
Paul Curnow, Partner, Baker & McKenzie, said:
“Baker & McKenzie is excited to be assisting DP Energy with this unique combined wind and solar project that will help South Australia in meeting its ambitious low carbon energy target. As advisors to wind and solar projects in Australia and around the world, we are pleased to be contributing our legal and regulatory know-how to the success of the Port Augusta Renewable Energy Park at a time when more and more renewable energy projects demonstrate their important role in assisting Australia in meeting its climate targets.”