Australia’s international wind energy company Windlab Limited has achieved financial close for its AUD75 million (US$57,5 million) Kiata wind farm and will begin construction in January 2017, after securing financing from John Laing Group plc and National Australia Bank.
Under the terms of the investment agreement, John Laing Group plc acquires 72.3% of the Kiata wind farm project in Victoria, Australia from Windlab Limited, the developer of the project. Windlab has retained 25% of the project company’s equity, with 2.7% granted to local landowners.
In addition to John Laing’s equity investment of AUD32.6 million (US$25 million), the construction of the Kiata wind farm will be project financed with debt arranged by National Australia Bank, which will provide AUD50 million (US$38.3 million).
Kiata Wind Farm (Kiata) is a 30 MW with 9 Vestas V126 WTG turbines project located west of Horsham, Victoria, near the town of Nhill. Construction is expected to take less than 12 months with the wind farm being operational before the end of 2017.
On completion, the wind farm is expected to generate around 134,000 megawatt hours of electricity per annum – enough power to supply more than 20,000 homes.
The project has moved quickly to close financing after signing a contract in June 2016 to supply Large-scale Generation Certificates to the Victorian Government under their innovative supply agreement.
Roger Price, Windlab Chief Executive Officer, stated:
“The Victorian Governments innovative scheme for the procurement of Large-Scale Generation Certificates (LGCs) has played an important role in re-vitalising the wind industry after a period of decline resulting from Federal Policy uncertainty. Coupled with its more ambitious and progressive 2025 Renewable Energy Target, these initiatives will help bring billions of dollars of investment to Victoria and significantly reduce the states’ carbon footprint.”
“This is another Windlab project successfully partnered with the local community. This win-win outcome will ensure that the neighbours and community of the wind farm benefit from this investment for the next 20 years.”