Genex Power completes Jemalong solar farm acquisition looking to boost earnings

The Sydney-based publicly listed renewables developer has completed the acquisition of the 50 MW Jemalong solar PV project in New South Wales. It has also commenced refinancing of a 50 MW solar projects that forms part of its landmark Kidston renewable energy hub, Australia’s first large-scale project to use pumped hydro to store solar generated power.

March 13, 2019 Marija Maisch

The 50 MW solar project will complement Genex Power's project portfolio.

Image: Genex Power, Twitter

While it continues to work on its flagship Kidston project, Genex Power has completed the acquisition of a utility-scale solar farm in New South Wales. The developer decided to expand its generation portfolio with a purchase of the 50 MW Jemalong solar project last September on the back of a considerable inflow of revenues from its 50 MW Kidston Solar Project.

The solar farm sits alongside an operational 1.1 MW concentrated solar thermal power pilot plant deployed by Australian CSP specialist Vast Solar. The $23.7 million project was billed as the world’s first modular CSP facility using sodium as a heat transfer fluid when switched on in January 2017.

Noting that the critical elements are now in place, including Generator Performance Standards (GPS) approval from the Australian Electricity Market Operator (AEMO) and a firm Offer to Connect from network service provider Essential Energy, Genex Power now aims to rapidly complete the development and financing of the project that is slated to start construction mid 2019.

“We believe the addition of JSP provides an excellent opportunity to diversify Genex’s generation portfolio geographically whilst achieving exposure to the strong electricity spot prices in NSW,” James Harding, CEO of Genex Power, said in a statement.

Financing for the Jamelong plant is currently underway with a number of banks indicating strong interest to provide construction finance to the project, the developer said, noting that this will coincide with refinancing of the 50 MW Kidston stage 1 solar plant in the middle of 2019.

“The accelerated development timeline and the short construction period will allow Genex to achieve a step-up in revenue earnings whilst the construction of the Kidston Stage 2 projects proceeds,” Harding said.

The Stage 2 projects include a 250 MW pumped storage hydro project and a multi-staged integrated solar project of up to 270 MW under development. The facility also comprises the operating 50 MW Stage 1 solar project and a Stage 3 wind project of up to 150 MW if proven feasible.

The Kidston renewable energy hub, which will be located at a remote site that was once Australia’s largest gold mine, will use the existing pits at the location to provide around eight hours of storage for solar generated power.

Kidston timeline

After the Stage 1 solar farm was switched on in 2017, the Kidston renewable energy received a development approval for 270 MW of solar last April. In September, Genex secured a development approval for the pumped storage component, noting at the time that the project remains on track to commence construction in 2019 and generation from 2022.

This was followed by a deal with EnergyAustralia, under which the electricity retailer will provide equity financing for the construction of the jointly owned Kidston Pumped Hydro Project and have exclusive rights to negotiate an off-take agreement. With financial close still in the works, Sydney-based publicly listed Genex Power signed an early works agreement for the 250 MW Kidston Pumped Storage Hydro Project with EPC contractors McConnell Dowell and John Holland last month.

As for the next step, Genex is also looking to secure financing for the 270 MW solar farm, which it expects to achieve once financing for the pumped storage project is finalized.

In terms of financing, Genex Power has secured a concessional debt funding of $516 million from the Northern Australia Infrastructure Facility – subject to a number of conditions and customary terms – for the second stage of its Kidston power facility, comprising the 270 MW solar PV plant and the 250 MW of pumped storage hydro project.

Previously, the Kidston energy hub received $8.9 million in funding from the Federal Government, through the Australian Renewable Energy Arena (ARENA), for the construction of the Stage 1 solar project, and up to $9 million in funding to support the development of Stage 2 Solar and Stage 2 Hydro.

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