The CEFC has announced an investment in the Golden Plains Wind Farm which aims to reduce emissions by a single-digit percentage.
In a statement, the CEFC said its investment in Victoria’s Golden Plains Wind Farm also attracts significant new investors at a time when Australia’s renewable energy objectives are growing.
The CEFC has agreed to invest up to $175 million in the development of Stage 1 of the Golden Plains Wind Farm near Geelong. The project will feature 122 wind turbines and will produce 756.4 MW of clean energy to replace coal-fired power plants. Over the project’s 30-year lifespan, the expected yearly emissions abatement is 770,000 tonnes of CO2-e, or more than 23 million tonnes of CO2-e.
The Golden Plains Wind Farm is Australia’s first completely merchant wind farm, with the CEFC commercial lending package crowding in an additional $1.8 billion of private sector capital. TagEnergy, a clean energy investor, contributed 100 per cent of the equity in its first Australian venture. Westpac, Bank of China, Mizuho, the Commonwealth Bank, and the Danish Credit Export Agency EKF are among the debt providers.
TagEnergy, a subsidiary of the Impala SAS Group, has purchased Stage 1 of the Golden Plains Wind Farm from WestWind Energy and will manage the project for the next 30 years while working on completing Stage 2. TagEnergy today has about 1 GW of wind and storage assets under development or in operation around the world as part of a portfolio of nearly 4 GW of wind, solar, and battery storage projects in five countries.
According to CEFC, it will be the largest onshore wind farm Vestas, a Danish wind farm manufacturer and supplier, built in the Asia Pacific area.
CEFC CEO Ian Learmonth said the COP27 reminded everyone of the need to reduce emissions right away. Learmonth stated that CEFC capital is fueling a significant expansion of its renewable energy-producing capacity to help Australia accelerate its decarbonisation efforts and achieve net zero emissions by 2050.
“Large-scale wind developments like Golden Plains Wind Farm enable Australia to capitalise on our abundant natural resources so we can decarbonise our energy grid and fill the gap in energy supply caused by the accelerated exit of coal-fired power stations,” Learmonth added.
According to Learmonth, the project shows CEFC’s continuous evolution after 10 years of investment.
“Our investment expertise is helping the clean energy sector overcome significant headwinds, including supply-chain issues, rising prices and higher interest rates. As a critical contributor to the Australian Government’s Rewiring the Nation strategy, the CEFC is helping build a 21st-century grid that will deliver clean energy to homes and businesses around Australia,” Learmonth stated.
TagEnergy CEO Franck Woitiez said: “We are delighted to work with the CEFC in our first investment in Australia. The CEFC’s ten years of experience developing Australia’s wind farm sector, combined with our deep expertise, enthusiasm and commitment to this market, will bring long-term benefits to Australia through clean energy generation, emissions reduction and economic opportunities.”
CEFC Head of Wind Investment Joe Harber said: “The investment reflects the long-term and successful CEFC investment strategy of supporting clean energy projects ahead of securing power purchase agreements. By offering a financial bridge between development and contracting, we can fast-track the construction of these vital assets and make a meaningful contribution to emissions reduction.”
Harber stated that CEFC’s ability to help commercial banks attain financial close on their first fully commercial wind farm makes the organisation especially happy. He added that by bridging this substantial funding gap for developers, CEFC capital is promoting the quick construction of crucial clean energy projects necessary for its decarbonisation.
When fully operational, the 1,300 MW Golden Plains Wind Farm would provide enough renewable energy to power more than 750,000 residences, or every house in rural Victoria, according to TagEnergy.
The Golden Plains Wind Farm will be constructed in the South West Victoria Renewable Energy Zone, which AEMO has designated as having good access to current network capacity, system strength, and resource potential. Construction is scheduled to begin in early 2023, with operations beginning in 2025.
