November 1 (Renewables Now) - Tilt Renewables Ltd’s (NZE:TLT) board of directors has given the go-ahead to the 336-MW Dundonnell wind project in Victoria to proceed to financial close, expecting construction to begin January.
The developer said on Wednesday it has also struck a 15-year power purchase agreement (PPA) for 50% of the plant’s output with an investment grade counterparty whose name was not disclosed. Thus, Tilt has now contracted 87% of the wind farm’s generation, including an earlier deal with the Victorian government for 37% under the state’s contract for difference scheme.
Financial close for the AUD-560-million (USD 399m/EUR 352m) project is expected by the end of this year. As previously announced, around AUD 300 million of the overall project cost will be financed through a debt package from National Australia Bank Ltd (ASX:NAB) and MUFG Bank Ltd.
Tilt anticipates an equity raising in early 2019 to support construction of the wind park, the company added.
The Dundonnell wind farm will be powered by 80 Vestas V150-4.2MW turbines with a combined average generation of 1,230 GWh per year. Tilt aims to launch construction in January 2019 and laud first power from the plant in the second quarter of 2020. The start of commercial operations is targeted for September 2020.
(AUD 1.0 = USD 0.712/EUR 0.628)