UPDATE - Naturgy-led JV inks corporate PPA for 58-MW wind project in Australia

Spanish electric and gas utility Naturgy Energy Group SA (BME:NTGY) has secured a corporate off-taker for its 58-MW Crookwell III wind farm project in New South Wales, Australia.

The utility said Friday that it has signed a power purchase agreement (PPA) with Australian telecommunications company Telstra Corporation Ltd (ASX:TLS), which has committed to procure 80% of the future wind farm’s output.

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The project will be delivered by Global Power Generation (GPG), Naturgy’s joint-venture company with Kuwait Investment Authority, Kuwait’s sovereign wealth fund.

GPG is set to invest AUD 120 million (USD 92.7m/EUR 76.5m) in the Crookwell III project and start building the wind farm in the fourth quarter of 2021. The start of operation is expected to occur in the first half of 2023.

Crookwell III is Naturgy’s sixth wind power investment via GPG in Australia and the third backed by a corporate off-taker. Telstra is the only named corporate buyer of the three.

Three of GPG’s wind farms are covered by PPAs awarded by the Australian Capital Territory (ACT) government and the state of Victoria government.

With the latest contract, GPG’s portfolio of PPA-backed wind farms and projects in Australia amounts to more than 750 MW, according to Naturgy.

GPG is currently building a 10-MW/20-MWh battery storage system in ACT and boasts a portfolio of 650 MW of projects to be located in Victoria and New South Wales, the Spanish company added.

Naturgy holds 75% interest in GPG, with Kuwait Investment Authority owning the rest.

(AUD 1.0 = USD 0.773/EUR 0.637)