The project is expected to start operations in the second half of 2020.
Global Power Generation (GPG), a joint venture between Spain-based firm Naturgy Energy Group, S.A. and the Kuwait Investment Authority (KIA), was awarded 180MW of renewable capacity in the wind farm project Berrybank 150 km from Melbourne, Australia.
According to an announcement, Berrybank will need a total investment of US$186.08m (A$259m) and is expected to start operations in the second half of 2020. It is expected to contribute US$25.56m to profits every year once fully operational.
“Australia is a very attractive country to invest in renewable energy projects as it combines attractive returns for investors while it takes into consideration the social and environmental requirements,” said Naturgy executive chairman Francisco Reynés.
The contract also hits Naturgy’s investment and profitability criteria as its consists of a 15-year power purchase agreement (PPA) at a regulated tariff, supporting the company’s targeted growth in renewable capacity of 3x.
“This is Naturgy’s first inorganic investment following the presentation of its new Strategic Plan 2018-2022 last June, and GPG’s second investment in Australia ever, allowing it to reach a total renewable capacity of approximately 270 MW in the country,” the firm added.
Naturgy has a project pipeline of more than 1,000MW in Australia in the states of Victoria and New South Wales, of which around 500MW are ready to be executed in case of an award.
GPG is 25% owned by the KIA, the oldest sovereign fund in the world. KIA’s interest in GPG is managed by the KIA’s direct infrastructure platform, Wren House Infrastructure Management.
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