Carnegie says 10MW Northam Solar Project moves forward with new investors on board

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Carnegie Clean Energy, the Fremantle-based developer listed on the ASX, said on Tuesday that IBA and PNF have signed a binding term-sheet for a collective 50% ownership of the Northam Solar Project, alongside Carnegie’s 50%.

The two companies, selected from a competitive investment process run by Carnegie, are expected to finalize the detailed transaction documentation in the coming weeks, after which all funding requirements for the battery storage-ready project will be complete.

Just a month ago, Carnegie secured a 12‐month AU$7.5 million construction debt finance facility for the Northam Solar Project from Perth-based private investment group Asymmetric Credit Partners, which it plans to refinance with a major retail bank, once the project is commissioned.

For its 10MW Northam Solar Farm, Carnegie hopes that it will serve as a template for future projects, providing value from multiple revenue streams including electricity sales and renewable energy certificate sales relating to its 50% ownership of the project, a project development fee at financial close and a share of the EPC and operations and maintenance margins.

“This will be Carnegie’s second solar project that we own and operate and we’re delighted to be working alongside Indigenous Business Australia and the Perth Noongar Foundation as their first investment in renewable energy in WA,” said Carnegie managing director Michael Ottaviano. “The Northam Solar Project is a great step forward in Carnegie’s strategy of developing a mixture of customer owned projects that generate an immediate return at the completion of construction and self-owned projects that generate an annuity return over the life of the project.”

Carnegie said the project co-owners would work with Energy Made Clean and Lendlease to drive Noongar and Aboriginal employment and procurement outcomes in the construction and operation of the project.

The $17 million solar project, which won development approval from the local council in back in June, is slated to start operation in the second half of 2018, when it will begin to sell power to the Western Australian grid.