Goldwind Achieves Financial Close for Gullen Range Wind Farm
Gullen Range Wind Farm
27 June 2013
Goldwind today announced the financial close on its largest overseas wind project – the 165.5MW Gullen Range Wind Farm.
The financing facility was closed and the first drawdown has been completed. The transaction includes a project financing facility of $250m AUD. The National Australia Bank (NAB) acted as Financial Advisor and also led the financing as Mandated Debt
Arranger and Bookrunner. The five year construction and term facility is financed by the Bank of China, Bank of Communications, China Construction Bank, Industrial and Commercial Bank of China and NAB.
The Gullen Range Wind Farm is located in the Southern Tablelands of New South Wales (NSW). Construction of the project commenced in October 2012 and has been funded to date by project owner Goldwind.
“Achieving Financial Close on Gullen Range Wind Farm demonstrates that Goldwind has the products and capability to meet the requirements of non-recourse project finance. This is important to Goldwind as project finance is frequently utilised to fund Australian wind farms. This major milestone has been achieved after significant effort by the Goldwind team, the bank group including National Australia Bank as the lead bank, Bank of China, Bank of Communications, China Construction Bank,
Industrial and Commercial Bank of China and with the support of key advisors.” said John Titchen, Managing Director of Goldwind Australia.
The substantial Gullen Range Wind Farm investment is viable on the basis of the Australian Government’s Large Scale Renewable Energy Target (LRET). This essential policy is a successful measure for stimulating investment in substantial wind farm projects in Australia. Energy Australia has secured the production from the project through a Power Purchase Agreement (PPA). This PPA is
one of the key project agreements which have facilitated the wind farm development.
EnergyAustralia’s Group Executive Manager of Energy Markets, Mark Collette, said “the new PPA with Goldwind Australia was further evidence of EnergyAustralia’s intention to pursue investment in renewable energy in order to meet the company’s obligations under the Federal Government’s Renewable Energy Targe.”
Goldwind Australia is the EPC contractor for the project and will provide ongoing operation and maintenance services. The wind farm will be connected to the Transgrid 330kV transmission system, a connection agreement was announced in July 2012. The connection works are well advanced and are due to be completed in the 4th quarter of 2013.
On the 22nd May 2013, Gullen Range Wind Farm also reached a major construction milestone, with the erection of its first 2.5MW Permanent Magnet Direct Drive (PMDD) wind turbine at site. The first six 2.5MW wind turbines have now been installed.
The project is on schedule with a total of 56 2.5MW wind turbines and 17 1.5MW wind turbines to be erected at the site before the end of 2013. The 165.5MW Gullen Range Wind Farm is Goldwind’s second wind farm in Australia following the successful 19.5MW Mortons Lane Wind Farm which was completed at the end of 2012 and is now owned by CGN Wind Energy.
Catcon and CPP are contracted to construct the civil and electrical works at Gullen Range Wind Farm. These site works are now at an advanced stage with more than half the site roads established and foundations poured. Deugro has been contracted to manage the delivery of wind turbine components to the site. These deliveries commenced on the 6th May 2013 and are planned to continue for 28 weeks.
The site work force totals approximately 112 people at present with significant local economic benefit to the local economy. Substantial council road upgrades have been undertaken to facilitate delivery of equipment to site.