APA Group has entered into a 12-year offtake agreement with an energy supplier that will underpin the construction of the 130MW Badgingarra Wind Farm in Western Australia.
The agreement is for Alinta Energy to purchase all of the energy and the Large-scale Renewable Generation Certificates (LGCs) generated by the wind farm.
The Badgingarra Wind Farm will be located adjacent to APA Group’s 80MW Emu Downs Wind Farm and a recently announced 20MW solar project, creating a 230MW renewable energy precinct.
The three facilities will share operational synergies with APA Group’s existing operations.
APA Group Managing Director, Mr Mick McCormack, said, “We are excited to announce this project which further expands the existing Emu Downs Wind Farm that APA acquired in 2011.
“APA benefits from a long history of wind data at this site, well known for its strong wind resource and proximity to suitable transmission connection.
“Together with the solar farm project that we recently announced, APA is continuing to grow its capabilities in owning and operating renewables infrastructure which is helping support Australia’s transition to a more carbon efficient future.”
Financial close is expected in mid-2017 and is subject to conditions precedent including finalisation of a transmission connection agreement with Western Power.
This is an important project for Western Australia, as it will connect more renewable energy to the South West Interconnected System (SWIS).
Construction is expected to be completed in early 2019. The approximate $315 million capital cost will be funded from APA Group’s currently available cash and operating cash flows.