Neoen closes financing for solar trio in Australia

Three projects of Neoen Australia are the first with debt financing to reach financial close under the Clean Energy Finance Corporation’s AUD250 million (US$191.5 million) large-scale solar program and the Australian Renewable Energy Agency’s AUD92 million (US$70.5 million) large-scale solar round.

The projects are:

• Parkes Solar Farm, a 55 MW project 10km west of Parkes, NSW.
• Griffith Solar Farm, a 30 MW project south east of Griffith, NSW.
• Dubbo Solar Farm, a 25 MW project east of Dubbo, NSW.

The projects are owned and developed by renewable energy developer Neoen, with the debt financing provided by the CEFC, along with funding from ARENA. Bouygues Construction Australia has been engaged as lead contractor for the construction and long-term operation and maintenance of each of the projects.

Herbert Smith Freehills has advised Neoen Australia on the construction, operation and financing, and the Clean Energy Finance Corporation (CEFC) on the project financing, of the three solar farms in New South Wales, with a total project cost in excess of AUD230 million (US$176 million). They advised on a number of aspects for each of the projects, including the long-term project finance debt facility, offtake arrangements, construction, long-term maintenance arrangements and grid connection.

The Griffith Solar Farm and the Parkes Solar Farm are each underpinned by power offtake agreements with ENGIE, while the Dubbo Solar Farm has been developed and project financed on a fully merchant basis.

Other advisors on the projects included Baker McKenzie (also advised the sponsors) and DLA Piper (advised ARENA).