Genex refinances 100-MW Aussie solar duo to gain more cash

Australia’s Genex Power Ltd (ASX:GNX) has agreed to obtain AUD 16 million (USD 10.9m/EUR 10.7m) in debt to refinance existing loans tied to two of its solar photovoltaic (PV) parks in Queensland and New South Wales.

The subordinated debt facility will be directed towards the 50-MW Jemalong solar farm in New South Wales and the 50-MW Kidston plant in Queensland’s Far North, also known as KS1, Genex said in a bourse filing.

To be extended by domestic infrastructure fund manager Infradebt Pty Ltd, the fresh funds will be used to refinance the existing subordinated loan that Genex had with the Clean Energy Finance Corporation (CEFC), enabling the developer to gain more revenues amid the increased wholesale electricity prices.

Each of the two solar parks is generating electricity for the National Electricity Market. According to Genex’s statement, Jemalong is fully exposed to merchant electricity and large-scale generation certificate prices in New South Wales, while KS1 benefits from a price floor mechanism with the Queensland government.

The Aussie developer noted that the enhanced cash flows from its solar portfolio will back its ongoing portfolio development activities, including its 250-MW Kidston pumped storage hydro project and the 50MW/100MWh Bouldercomb battery in Queensland.

(AUD 1.0 = USD 0.682/EUR 0.668)

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