ReNu Energy enters HOA for four more shopping centre arrays

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Shopping centres have long appeared a no-brainer for PV installations. However, tenancy agreements and contractural complexity when it comes to offtake agreements are proving to be a stumbling block. The provision of third party finance may overcome some barriers to entry, with ReNu Energy illustrating a way forward in some states.

ReNu Energy’s latest agreement follows an initial four solar PV embedded networks the company has already delivered. With this HOA agreement ReNu can begin its viability assessments of four centres, two in Victoria and two in Queensland.

ReNu Energy CEO and Managing Director Craig Ricato said: “We are very happy to be continuing our relationship with the SCA Property Group in the delivery of four further solar PV embedded networks.”

ReNu’s viability assessments are extensive, especially following delays incurred in the initial four projects caused by overlapping State and Federal regulations and the differing circumstances of both the shopping centres’ common areas and tenants. The assessment ascertains the centres’ electrical infrastructure, load profile, solar PV systems design and sizing, and suitability for the implementation of an embedded network.

“We have learnt a lot during the delivery of the first centres and look forward to putting these learnings into practice as we deliver the next four,” Ricato said in a statement.

The previously mentioned regulatory hurdles also mean ReNu will likely alter its project approach, splitting the task into two stages. Stage One will roll out the solar PV electricity supply to the centres’ common areas and Stage Two will see solar PV electricity provided for the remaining tenant embedded network.

“The option to deliver the projects in a staged approach” said Ricato, “will ensure we are able to more efficiently deploy our resources as we work with the shopping centre tenants and regulators to secure the necessary approvals to establish embedded networks.”

As it stands the proposal for each shopping centre is for operational solar PV and embedded network for a term of 10 years, with a right to renew by ReNu Energy for three further terms of five years each.

The HOA remains subject to entry into final binding transaction documents for each individual shopping centre.

Author: Blake Matich

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