Genex buying 50-MW solar project in New South Wales

Australia's Genex Power Ltd (ASX:GNX) said today it has struck a deal to acquire a 50-MW solar photovoltaic (PV) project in New South Wales.

The Jemalong solar project, which Genex describes as well-advanced, will be located near Forbes, in the central-west region of the state. With all needed land and development planning approvals in place, financial close is anticipated to be reached in the first half of next year.

The acquisition is subject to conditions precedent, such as the project securing approvals from the Australian Electricity Market Operator (AEMO), which should be satisfied by the seller by end-February. Genex will finance construction of the plant either on a solely merchant basis or under a potential off-take deal. It plans to source most of the needed funds from debt financing, while a range of other funding options are also possible, including a sell-down of a project stake, it said.

The deal is in line with Genex’s long-term strategy to add more assets to its portfolio and further expand its business into other regions within the National Electricity Market. The company noted, however, that Stage 2 of its Kidston Renewable Energy Hub in North Queensland, comprising a 270-MW solar and 250-MW pumped storage hydro projects, continues to be its main focus as it works to achieve financial close on the scheme.

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