Genex Power Limited has announced that it has successfully achieved Financial Close for its Kidston Solar Project Phase One 50 MW (KSP1).
Genex has entered into a Debt Funding Arrangement for a total of approximately AUD100 million (US$77 million) with Société Générale and the Clean Energy Finance Corporation (CEFC), finalizing all necessary funding requirements for the Engineering, Construction and Procurement (EPC) and the Operation and Maintenance (O&M) costs of the Project.
It is the latest project to have received finance under the CEFC’s large-scale solar financing program, following CEFC’s recent AUD150 million (US$115 million) commitment to three NSW projects (not Genex owned). Additional non-Genex CEFC-financed large-scale solar projects are nearing financial close, with the program on track to exceed its initial AUD250 million (US$192 million) target. Financial close for KSP1 occurs following Genex’s successful capital raise announced to the ASX on 03 February 2017.
CEFC Large-Scale Solar lead Gloria Chan said:
“The CEFC is delighted to be part of the Kidston Solar Project Phase One, with our tailored finance helping accelerate the construction and delivery of the 50 MW large-scale solar farm on this unique site. Energy storage solutions such as pumped hydro are one of the next steps in our clean energy transition. With the cost of solar generation continuing to decline, we are committed to working with developers such as Genex to finance opportunities that can complement Australia’s growing renewable energy capacity, by adding energy storage and grid stability services.”
Project Financial Close now ensures construction of the project remains on track with first generation from the solar panels into the grid expected in Q4 2017 and practical completion in Q1 2018. In addition to the debt and equity funding, Genex will also draw on AUD8.85 million (US$6.78 million) of grant funding from the Australian Renewable Energy Agency (ARENA), provided through its Large-Scale Solar Competitive Round, for project development costs.
ARENA CEO Ivor Frischknecht said the Project would contribute towards ARENA’s vision for a smooth transition to a renewable energy future by increasing the reliability and security of renewable energy.
Mr Frischknecht said:
“Kidston holds the tantalising proposition of being Australia’s first large-scale solar project capable of delivering renewable energy into the grid around the clock. The plant could potentially contribute towards powering an adjacent 250MW pumped hydro storage plant Genex is developing with ARENA support. This would allow renewable energy to be stored through the day and delivered when needed most.”
With Project construction underway for KSP1, Genex will turn to securing financial arrangements for its 250MW Kidston Pumped Storage Hydro Project, as well as the completion of technical feasibility studies for its 270MW Kidston Solar Project (Phase Two).