Tasmania will soon see a one third increase to its wind capacity with the Clean Energy Finance Corporation (CEFC) announcing a $59 million commitment to the Granville Harbour Wind Farm.
The 112MW Granville Harbour Wind Farm is located on a 1200 hectare cattle farm on Tasmania’s west coast. Construction is under way and, once operational, the $280 million development is expected to generate enough electricity to power more than 46,000 homes.
CEFC CEO, Ian Learmonth, said,“This is the CEFC’s largest investment in Tasmania, and our first in a Tasmanian wind project. Tasmania has a great track record in renewable energy through its investment in hydro resources. We’re excited to be involved in a project that will further diversify the Tasmania’s clean energy to include more wind, while helping Tasmania achieve its target of 100 per cent renewable energy by 2022.”
The CEFC has already invested more than $16.4 million in Tasmanian-based clean energy projects. This includes tailored finance for more than 140 smaller-scale clean energy projects via the CEFC’s specialist co-financing programs with major banks. These programs provide finance for a range of eligible renewable and energy efficiency projects, largely to small and medium-sized businesses.
CEFC Wind Sector lead, Andrew Gardner, said, “Granville Harbour Wind Farm is part of an increasing focus on greenfield wind energy projects in Tasmania, which will see considerable investment in regional areas of the state over the coming years. This project will create regional employment opportunities both during and after construction. It will also deliver ongoing benefits through community investment funds and associated improvements in local infrastructure.
“Nationally, we have now invested more than $760 million in eleven wind projects, delivering a combined capacity of more than 1.76GW of new clean energy. Wind remains the most cost-effective new clean energy source, with projects like Granville Harbour Wind Farm benefiting from a strong wind resource and ongoing wind turbine technology improvements to better harness the resource.”
Wind currently contributes only ten per cent of Tasmania’s renewable energy capacity, despite the state generating 90 per cent of its overall energy from renewables.
The Granville Harbour Wind Farm has a long-term power purchase agreement with Hydro Tasmania, which is exploring opportunities to become a net exporter of clean energy to the Australian mainland through its ‘battery of the nation’ project.
Granville Harbour Wind Farm is owned by Palisade Investment Partners on behalf of its clients. The CEFC finance for the project includes $25 million in direct equity, alongside $34 million in additional equity via the Palisade Renewable Energy Fund (PREF).
Palisade Managing Director and CEO, Roger Lloyd, said, “We are delighted to have the CEFC commit to this project as one of Palisade’s key clients, which sends a positive signal to institutional investors about the potential of renewable energy investment.
“Granville Harbour Wind Farm demonstrates Palisade’s hands-on approach to renewables investment and further diversifies our renewable energy portfolio. Palisade’s involvement through the development phase to financial close enables us to maximise risk-adjusted returns for our investors.
“PREF has a diversified portfolio including the Granville Harbour Wind Farm, Ross River Solar Farm, Hallett Wind Farm and Waterloo Wind Farm. We will continue to invest in renewables projects across the spectrum – from late-stage development through to operational assets – giving investors access to a broad range of opportunities that meet sustainability objectives and generate stable long-term returns.”
The CEFC has allocated $100 million to the Palisade renewable investment strategy, in addition to its $75 million cornerstone commitment to PREF.