April 19 (Renewables Now) - Australian utility investor Spark Infrastructure Group (ASX:SKI) has taken possession of the 100-MW/120-MW DC Bomen solar project in New South Wales from developer Renew Estate.
The photovoltaic (PV) park, worth AUD 188 million (USD 134.4m/EUR 119.6m), will be set up near Wagga Wagga, with construction slated to begin in the second quarter. Planned to connect into TransGrid’s transmission network, the facility is expected to be put into service a year later, in the second quarter of 2020.
The project has in place a 10-year power purchase agreement (PPA) with Westpac, which will buy part of its output and large-scale renewable generation certificates (LGCs), as well as contracts with energy retailer Flow Power for up to 10 years. Once up and running, the Bomen park is expected to fetch average annual revenue of AUD 13.5 million for the first five years of operation.
Beon Energy Solutions, a unit of Victoria Power Networks, will serve as engineering, procurement and construction (EPC) contractor for the project.
Spark Infrastructure described the acquisition as “a logical and prudent first step” in delivering its value build strategy. It said the acquisition and construction costs will be financed from cash and existing debt and equity.
(AUD 1.0 = USD 0.715/EUR 0.636)