UPDATE 2 - CEFC extends USD 90m for 270-MW Australian wind farm

Australia's Clean Energy Finance Corporation (CEFC) today said it is providing up to AUD 120 million (USD 90m/EUR 84.7m) to help finance the 270-MW Sapphire wind project in the state of New South Wales.

The AUD-588-million wind park has a power purchase agreement (PPA) for 100 MW with the Australian Capital Territory, won in an auction, while it will sell the rest of its output on a merchant basis.

“In order to achieve Australia's Renewable Energy Target, we need to see the accelerated development of many more large-scale renewable energy projects in the near term. This means financiers and developers are increasingly required to support projects which have an element of merchant risk to augment any PPAs,” commented CEFC Wind sector lead Andrew Gardner.

Debt financing for the big wind farm will also be provided by Commonwealth Bank of Australia (ASX:CBA), Sumitomo Mitsui Banking Corp and Danish export credit agency Eksport Kredit Fonden (EKF). Project developer CWP Renewables will keep a minority equity stake, while the majority of the equity funding comes from Partners Group.

As announced earlier today, Vestas Wind Systems A/S (CPH:VWS) will equip and help build the 270-MW wind farm in New South Wales. It won an AUD-430-million contract for the project in consortium with Australian firm Zenviron Pty Ltd. The latter will deliver the civil and electrical balance of plant works.

Wilson Transformer Company will make the transformers and TransGrid will build, operate and maintain the on-site substation.

(AUD 1 = USD 0.75/EUR 0.71)

Choose your newsletter by Renewables Now. Join for free!