The sale of the proposed Silverton wind farm has been finalised, with electricity company AGL Energy selling the project to the Powering Australia Renewables Fund.
The $36 million sale was part of an offtake funding agreement between the two, which will see AGL purchase power from the windfarm at $65 per mega watt hour for the next five years, with an option to extend for the next five years at the same or lower price.
AGL Silverton wind farm project manager Adam Mackett said the wind farm will be a positive for the region.
“The project will provide a range of social and economic benefits,” Mr Mackett said.
“Up to 150 jobs will be created during the peak of construction, from an economic perspective, this level of job creation would result in significant flow-on effects to the regional economy,” he said.
“The wind turbines will generate approximately 780,000 mega watt hours of renewable energy annually which can power more than 137,000 average Australian homes.”
The Silverton wind farm will be the first new project offered to the Powering Australian Renewables Fund, a partnership between AGL, QIC and Future Fund which aims to develop approximately 1,000 MW of large-scale renewable energy projects.
This 1,000 MW target will be approximately 20 percent of the estimated 5,000 MW of new renewable energy required to meet the federal government’s Australia-wide 2020 Renewable Energy Target.
AGL Managing Director and CEO Andy Vessey said the sale is a major milestone for PARF.
“Silverton is the first new renewable project build offered to the Fund, following the sale of AGL’s already developed solar plants and Nyngan and Broken Hill in November 2016,” Mr Vessey said.
“The momentum we’re experiencing with PARF is pleasing and proves that investor support exists for large-scale renewable development,” he said.
“However, further comprehensive policy changes are required to facilitate Australia’s transition to a low-carbon economy.”