FRV secures financing for Metz Solar Farm in New South Wales

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Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy and a leading global developer of renewable energy projects, has closed the financing agreement for its 115 MWac Metz Solar Farm.

Funds will be provided by Westpac and NORD/LB in the form of a Green Loan compliant with the Loan Market Association Green Loan Principles and the Green Projects requirements. This is the second green loan FRV has secured in Australia and one of the first renewable-energy project financing of this type in the country.

FRV completed the acquisition of Metz Solar Farm in November this year. The project is underpinned by a Power Purchase Agreement (PPA) with Snowy Hydro, signed in 2018.

Located in the New England region of New South Wales near Hillgrove, 20 km east of Armidale, the plant will connect to the national grid and generate enough power to supply up to 40,000 Australian households each year — more than half of the total 66,000 households in the region.

At the same time, it is estimated that the annual greenhouse gas emissions avoided by the project will be equivalent to 288,000 tonnes of CO2.

Metz Solar Farm will deliver significant benefits to the Armidale area and the wider community, with the creation of direct jobs throughout each stage of the project’s life cycle. During the construction period it is estimated that the project could provide jobs for up to 100 workers over the course of a year.

Metz Solar Farm brings the number of FRV’s solar projects either operating or in construction in Australia to eight, of which four are in New South Wales, including Moree (56 MWac) and Goonumbla (69.75 MWac) in operation, and Sebastopol (90 MWac) under construction.

Carlo Frigerio, Managing Director of FRV in Australia, said: “We are delighted to see Metz solar farm securing the funds to start construction and contribute to the ongoing energy transition in New South Wales.”

Mr Frigerio added “This has been an extraordinary year for FRV in Australia with three financial-close milestones achieved in less than 12 months. This is an unequivocal testament to our strong commitment to grow and consolidate our unique portfolio of solar assets in the country.”

Fady Jameel, Deputy President and Vice Chairman of Abdul Latif Jameel, said: “Through our work with FRV, Abdul Latif Jameel Energy plays an instrumental role in enabling Australia to deliver on its ambitious solar-capacity targets, with significant milestones secured on a number of large-scale solar farms in the last year. Australia is already among the world’s leading adopters of solar power, and we are committed to continue fast-tracking the country’s renewable energy transition.”

▪ The 115 MWac Metz Solar Farm will produce enough clean energy to supply up to 40,000 homes and avoid the emission of approximately 288,000 tons of CO2 annually.

▪ The project signed a Power Purchase Agreement (PPA) with Snowy Hydro in 2018 and will deliver significant benefits to the New England area and to the wider New South Wales community.

▪ This is the third financial close of FRV in Australia this year.

▪ The project is FRV’s eighth solar farm in the country for a total solar-project portfolio of 650 MW.