The consortium comprises Marubeni Corporation, Osaka Gas and APA Group. The development fees will be recognised progressively on a completion of construction basis, with $50 million – $60 million currently anticipated to be handed over in the 2010 financial year, and the balance in 2011.
AGL will continue to operate and maintain the wind farm, as well as retain the rights to all Renewable Energy Certificates and electricity output until 2036. EII will take an active role in the monitoring of construction and operation of the facility, and will fund all remaining development and construction costs under project finance facilities established as part of the transaction.
“The structure of this transaction where AGL retains all output, renewable energy certificates and operatorship, is consistent with the company’s strategy to maintain its leadership position in renewable energy generation. The transaction demonstrates the solid appetite for quality projects which deliver significant benefits to both parties,” said AGL CEO Michael Fraser.
The Hallett 4 wind farm is currently under construction on the Hallett Hill range approximately 40 km from Burra in South Australia. It will use 63 Suzlon S88v3 turbines and is being constructed by Suzlon under a fixed price turnkey contract.
AGL is owner and operator of renewable energy assets with over 900 MW of capacity currently in operation. The Hallett 1 wind farm (95 MW) was commissioned in June 2008, the Hallett 2 wind farm (71 MW) and Bogong hydro power station (150 MW) are due to be commissioned in late 2009, and the Oaklands Hill wind farm (67 MW) is under construction. Wind farms at Barn Hill (130 MW), Hallett 3 (80 MW) and, in a joint venture with Meridian Energy, at Macarthur (approximately 330 MW) are currently under development.
