Innogy acquires 460 MW solar projects in Australia

Innogy SE has announced the purchase of  two large-scale solar development projects from Overland Sun Farming in Australia, with a combined capacity of more than 460 MW. The Limondale and Hillston solar projects are located in New South Wales.

The parties signed all relevant contracts, with the transfer of the project companies to Innogy anticipated to take place in the second quarter of this year.

All parties involved have agreed to keep the terms and conditions of the transaction confidential, including the purchase price.

The planned investment volume of both projects including acquisition of project rights amounts to more than EUR400 million (US$496.27 million). At completion of the transaction, Innogy will become the sole owner of the two projects.

The acquisition is subject to certain standard conditions, including land and planning arrangements, as well as review by Australia’s Foreign Investment Review Board and approval from the Federal Treasurer from a foreign investment perspective. It is anticipated that the various conditions will be completed in the second quarter of 2018, enabling the entire transaction to complete.

The two projects are already in a well-advanced development stage, with all land, planning and connection processes, arrangements and approvals as well as detailed designs and construction arrangements expected to be finalised during the second quarter.

The Limondale project has a planned installed capacity of 347 MWp and will be located at Balranald, New South Wales. Construction works are expected to start in the second quarter of this year. Commissioning of the plant will be gradually realised. Full commercial operation is expected by the end of 2019.

The Hillston plant has a planned capacity of 115 MWp. Construction works are anticipated to commence at the latest by the third quarter of this year to achieve full commercial operation by the end of 2019.

The final investment decision to construct both projects will be taken in line with its targets regarding leverage and financial stability. Innogy will review all options regarding the ownership and financing structure of the project in order to maximise value for the company and shareholders.

Under current planning Innogy’s subsidiary BELECTRIC will be in charge of construction works and take over the operation and maintenance for both solar plants as service provider.