Kuwati and Spanish JV-built project will require investment of $186mn
The contract for a 180MW wind farm project in Australia has been awarded to Global Power Generation (GPG), a JV between Naturgy Energy Group and the Kuwait Investment Authority (KIA). The JV currently manages a total installed capacity of 4,000MW and employs 800 people worldwide.
Located 150km from Melbourne, the Berrybank wind farm project, will require an investment of $186 million, and is expected to begin operations in the second half of 2020. The wind farm is expected to contribute an EBITDA of approximately $25.6 million per year once fully operational.
“This is an important step to further strengthen our international presence. Australia is a very attractive country to invest in renewable energy projects as it combines attractive returns for investors while it takes into consideration the social and environmental requirements. We are very proud to have earned the trust of the State of Victoria to develop this large wind farm,” said Francisco Reynés, executive chairman of Naturgy.
The project is said to be Naturgy’s first inorganic investment, following the presentation of its new Strategic Plan 2018-2022 and the second investment of the company in the Asia-Pacific region. The contract is said to fully comply with the investment and profitability criteria established by Naturgy, in its strategic plan.
“The Berrybank windfarm is an attractive opportunity for GPG to continue its international growth strategy, and to build on GPG’s investment in renewable power in Australia, a core growth market for GPG,” added Reynés.
Karl Lim, vice chairman of GPG and executive VP of Wren House Infrastructure Management Limited, commented, “We look forward to working with the State of Victoria and the local communities on this important project.”
In 2014, KIA purchased a 25% stake in Naturgy, through its direct infrastructure investment platform Wren House Infrastructure Management.