Allens has advised the Australian Renewable Energy Agency (ARENA) in connection with the provision of grant funding to Kennedy Energy Park Phase I, an innovative wind, solar and battery hybrid power station in North Queensland.
Delivered under ARENA's Advancing Renewables Program, the funding will support Kennedy Energy Park as it becomes the first large-scale solar, wind and battery installation connected to Australia's national electricity market.
The $160 million project comprises 15 megawatts of solar, 43.5 megawatts of wind and two megawatts of storage.
The project is a joint venture between Windlab Limited and Eurus Energy Holdings and is financed with the assistance of $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-owned corporation CS Energy, combined with merchant revenues and large-scale generation certificates.
When completed, the project will have a generation capacity sufficient to provide electricity to approximately 35,000 average homes.
The project is to act as a proof of concept, and, if successful, could lead to the construction of Kennedy Energy Park Phase II, a $2 billion project with the potential to provide up to 1200 megawatts of generation capacity 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 Rob Watt, lead partner on the deal from Allens.
'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.'
These projects build on Allens' extensive experience in renewable energy financing, which includes advising on the financing of three solar farms in Queensland and New South Wales, a landmark portfolio of solar farms in Queensland and Victoria, the financing of the Manildra solar farm, the sale and project financing of the Silverton wind farm, and the Powering Australian Renewables Fund.
Allens legal team
Rob Watt (Lead Partner), Jamie Guthrie (Senior Overseas Practitioner), Jessica O'Sullivan (Lawyer)
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.