The Clean Energy Finance Corporation will invest a further $80 million in renewable energy in regional NSW, bringing to $350 million its commitment to the state’s renewable energy sector in four months.
The latest CEFC commitment will help accelerate the development and delivery of the $236 million 113MW Bodangora wind farm, near Wellington in the state’s central west.
It is the CEFC’s second major investment in wind generation in regional NSW in the past year, following its recent commitment of $120 million to the $588 million Sapphire Wind Farm near Glen Innes.
In February, the CEFC committed a further $150 million to accelerate the construction of three large-scale solar farms in NSW, to be built in Dubbo, Parkes and Griffith. The solar projects have a combined value of $230 million.
“With these projects we are seeing regional NSW capitalising on its natural strengths in renewable energy, contributing to a substantial increase in the state’s clean energy capacity,” CEFC wind sector lead Andrew Gardner said.
“NSW has set an aspirational goal targeting net zero carbon emissions by 2050. This will require significant new investment in large-scale renewable energy projects such as Bodangora.
“Once operational, the Bodangora wind farm is expected to produce enough energy to meet the needs of over 49,000 homes, making an important contribution to the renewable energy capacity in NSW. Importantly, the project will also deliver regional employment opportunities and support local communities through funding and sponsorship of local initiatives.”
EnergyAustralia will purchase 60% of Bodangora’s energy generation to 2030.
The balance of output will be available for Infigen to contract to commercial and industrial customers, or to sell on the spot or wholesale market.
Germany’s Norddeutsche Landesbank Girozentrale (NORD/LB) bank is also making its first wind financing in Australia, as a co-lender to the Bodangora project.
CEFC project lead Bobby Vidakovic said: “By supporting projects such as Bodangora, which have an element of merchant energy price risk, we are delivering a tailored financing model that supports the developer’s needs as well as mitigates risk to the lender.”
Infigen Energy’s managing director Ross Rolfe said: “Building Bodangora wind farm is the first significant milestone in delivering on Infigen’s growth ambitions.
“We have been delighted to work with our partners in bringing this project to fruition. Critical to our success has been the role played by the Clean Energy Finance Corporation and NORD/LB, in providing Infigen with debt facilities.”
Bodangora will include 33 General Electric 3.43MW turbines and scheduled to be fully operational in the second half of 2018.
Bodangora wind farm will be built by a consortium comprising GE and civil-engineering construction company Civil & Allied Technical Construction under an engineering, procurement and construction contract.