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Bungala Solar PV Project
JULY 2017
Reach Solar energy (Reach) today announced financial close on the second phase of the 300MWac Bungala Solar Photovoltaic (PV) project near Port Augusta.
The Bungala Solar project will be built on land leased from the Bungala Aboriginal Corporation, about 12km from Port Augusta. On full completion it will produce enough electricity for around 130,000 homes, is able to assist the grid with certain ancillary services, and is 'energy storage ready' for the future.
The financial close milestone for Bungala Two uses debt and equity commitments that were secured at the first financial close of Bungala One on 7 April 2017.
The 2 x 110MWac solar PV projects will be delivered without financial support from government. The equity providers are ENEL EGP and the Dutch infrastructure fund.
Origin Energy will purchase all electricity and renewable certificates produced by both solar projects under a Power Purchase Agreement signed in late 2016. The renewable solar energy is firmed up using Origin's generation and gas supply portfolio in South Australia and the national electricity market.
Professional services firm PwC continue to support Reach develop Bungala (balance 80MWAC for the 300MWAC site), and other solar projects in Australia including integrated legal, tax, capital advisory, debt advisory, due diligence and financial model audit services.
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About Reach Solar energy
Reach is focused on developing utility-scale, grid connected solar photovoltaic projects which deliver a competitive and predictable electricity tariff, and renewable certificates, for its customers. It is on track to develop over 1 OOOMW of solar PV in Australia by 2020/21.
The management team at Reach Solar energy has significant experience with the management of large electricity generation and retail companies, plus a proven track record for the development and delivery of complex, utility-scale power projects, utilising structured project finance.
Mr Tony Concannon
e: tony@reachsolarenergy.com .au
m: 0416 490 393
Mr David Webster
e: david@reachsolarenergy.com.au
m: 0411 381 803
ADDITIONAL PROJECT DETAILS
How much energy will Bungala produce?
The Bungala Solar Project will eventually be a 300MWac solar farm with 220MWac by September 2018. It will produce enough electricity for around 130,000 homes from nearly 1.2 million solar PV panels.
Who will the solar energy be supplied to?
Origin Energy is the customer for all electricity and renewable certificates produced by both the solar projects i.e. 220MWac. The Bungala solar project complements Origin's retail, generation, and fuel supply portfolio. Offtake negotiations continue for the balance 80MWac site capacity including the ongoing SA Government tender process.
What does financial close deliver?
The financial close milestone for Bungala One (11 OMWac) includes debt and equity commitments for the second phase (another 11 OMWac called Bungala Two) which is expected to complete in the third quarter of 2017.
Who owns the project?
The project has been sold by Reach Solar energy to an equal joint venture consisting of EGP and DIF. It will be built on land leased from the Bungala Aboriginal Corporation.
How many jobs will be created and when will construction start?
The construction will create some 350 jobs in the Port Augusta region with design to start immediately. The first electricity will be supplied to the grid by first quarter 2018, with 220MWac fully operational by third quarter 2018.
level 16, 461 collins street, melbourne 3000
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ADVISOR LIST FOR BUNGALA SOLAR PV PROJECT
Legal Finance (equity and debt) Tax Audit Modelling
Technical & Environmental
Grid Modelling
Insurance
Market Analysis
Financial Model
Price Waterhouse Coopers
Jacobs Consulting
GHD Consulting
Willis Towers Watson
ACIL Allen Consulting
White Box Financial
