RES and Macquarie’s Green Investment Group have reached financial close for the second stage of the 209MW Murra Warra Wind Farm near Horsham, Western Victoria, with its sale to global private markets investment manager Partners Group.
RES has been awarded the construction and asset management contract with GE providing 38 Cypress 5.5-158 turbines for the project.
GE’s subcontractor Zenviron will also work on the project.
Construction will get underway later this year, with the project slated to be completed by mid-2022.
The first turbine will be delivered in mid-2021, GE said.
RES and GIG have arranged long-term power purchase agreement for the electricity generated by the wind farm with utility Snowy Hydro.
The sale of Murra Warra 2 follows the earlier development, financing and construction of the adjacent 61 turbine Murra Warra 1, which was also acquired by Partners Group in 2018.
Debt financing was arranged from a banking consortium including ICBC, ING, Mizuho, MUFG, SMBC and Société Générale.
The financing was raised in accordance with the Asia Pacific Loan Market Association’s Green Loan Principles, and subject to an independent Second Party Opinion from Sustainalytics.
It is understood to be the first time a project finance green loan has been used to fund the construction of a wind farm in Australia.
“We are delighted to be able to continue our long-term involvement with the Murra Warra 2 wind farm and the local community through our construction management and asset management services,” said RES Australia’s chief executive Matt Rebbeck.
“With over 6GW of operational projects under management globally, and a portfolio approaching 1GW in Australia, we look forward to working with Partners Group to optimise the project’s construction and operational performance.”
Macquarie’s Green Investment Group ANZ head and executive director Lachlan Creswell added:”The complimentary partnership between GIG and RES has led to the successful development of a significant and sustainable renewable energy project for Victoria.
“The completion of stage one of the Murra Warra wind farm, and the development to construction of Murra Warra 2 marks a significant milestone for Australia’s renewable energy future.”
The companies said the direct economic stimulus provided by the first stage of Murra Warra during construction was $4.4m to the local and regional economy through spend on accommodation, retail items and services and this is anticipated to be replicated by the Murra Warra 2 construction.
The wind farm is expected to provide over 400 full-time equivalent jobs during the two-year construction period, and ongoing employment opportunities.
Murra Warra 2 has been rated by GIG’s Green Investment Ratings & Impact Advisory Team as AAA in its Green Impact Report with a Carbon Score indicating its effectiveness at reducing greenhouse gas emissions.
Murra Warra 2 will avoid emissions of an estimated 468 kilotonnes of CO2 each year, generating enough clean energy to power the equivalent of 150,000 Victorian homes.