Spark Renewables proposes 2.5-GW hub in New South Wales

Spark Renewables today unveiled a proposal to develop a renewable energy generation and storage hub in New South Wales (NSW) for up to 2.5 GW of total capacity.

The proposed Dinawan Energy Hub is a hybrid wind, solar and battery storage project to be situated within the South-West Renewable Energy Zone (REZ) in NSW. It is on the route of one particular interconnector, namely Project EnergyConnect, and strategically well-positioned near two others -- HumeLink and VNI West, also known as KerangLink.

The scheme can be realised in stages and is expected to significantly offset the impact of closing coal-fired power stations in the state.

“We are only at the start of the development process and the proposed project must undergo a rigorous planning and assessment process which includes environmental studies,” noted Anthony Marriner, Head of Spark Renewables. Work on preliminary studies and consultation will begin in the coming months. The firm said that no substantial commitments have been made so far, with associated costs remaining low at this stage. Construction on the first stage could be initiated in 2024.

The hub proposal was presented just as Spark Renewables’ parent company, Spark Infrastructure Group (ASX:SKI), announced that a consortium consisting of Ontario Teachers' Pension Plan Board (OTPP) and Kohlberg Kravis Roberts & Co LP (KKR) has recently approached it with an acquisition proposal. The group initially offered AUD 2.70 (USD 2.016/EUR 1.707) per stapled security and later increased that to AUD 2.80 apiece, but both offers were rejected as undervaluing.

Spark Infrastructure, though, has indicated it is willing to provide limited information on its business and its prospects in order to continue the negotiations.

(AUD 1 = USD 0.747/EUR 0.632)

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