Innogy is to acquire two solar developments in Australia totalling 460MW from Overland Sun Farming for an undisclosed price.
The 347MW Limondale and 115MW Hillston projects will be located in the state of New South Wales.
Land planning and connection arrangements and approvals are expected to be finalised during the second quarter, Innogy said.
Construction of Limondale is scheduled to start in the second quarter of this year, with full commissioning expected by the end of 2019.
Work on Hillston is planned to start in the third quarter of 2018, with commercial operations by the end of next year.
However, construction of both projects is still dependent on a final investment decision (FID) by Innogy. The company said the FID “will be taken in line with its targets regarding leverage and financial stability”.
Innogy added that it will “review all options regarding the ownership and financing structure of the projects in order to maximise value for the company and shareholders”.
The company’s Belectric subsidiary will be responsible for construction and operations and maintenance once the projects are operational.
Innogy and Overland expect the deal to be completed in the second quarter of 2018.
Innogy chief executive Uwe Tigges said: “With the acquisition of two of Overland’s Australian solar development projects, Innogy is entering into a strongly growing renewable energy market.
“This is a perfect fit with our strategy to deliver sustainable bottom line growth in accordance with innogy’s financial targets to maximise value for the company and our shareholders.”
Image: Belectric
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