Global Power Generation (GPG), a joint venture between Spain's Naturgy Energy Group and the Kuwait Investment Authority (KIA), the country's sovereign fund, was awarded 180 MW wind farm project in Australia.
In a strategic move, KIA had bought a 25 per cent stake in the Spanish group through its direct infrastructure investment platform Wren House Infrastructure Management in 2014.
GPG currently manages a total installed capacity of 4.000 MW and employs around 800 people worldwide.
Located approximately 150 km from Melbourne, the wind farm project, named Berrybank, will entail a total investment of A$259 million ($186 million) and is expected to start operations in the second half of 2020, said the company in a statement.
This is 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, through its joint venture, it stated.
On the contract win, Francisco Reynés, the executive chairman of Naturgy, said: "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," stated Reynes.
"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," he added.
The awarded contract fully complies with the investment and profitability criteria established by Naturgy in its new Strategic Plan 2018-2022 as it:
*Consists of a 15 year power purchase agreement (PPA) at a regulated tariff, supporting the targeted growth in renewable capacity of 3x during the Strategic Plan 2018-2022,
*Exceeds the minimum profitability targets in line with the company´s strict capital discipline to ensure value creation, and
*Reduces the risk profile of the energy group, further increasing its internationalization by investing in Australia, an OCDE country which presents highly attractive conditions for investment in renewables.
Karl Lim, the vice chairman of GPG and executive vice president of Wren House Infrastructure Management Limited, said: "We look forward to working with the State of Victoria and the local communities on this important project."
The wind farm is expected to contribute an ebitda of approximately 22 million euros per year once fully operational, he noted.
Naturgy increases its presence in Australia threefold after the awarding of this 180 MW wind farm project, he added.-TradeArabia News Service