Australia’s clean energy generation and electricity storage solutions provider Genex Power has entered a sale and purchase agreement to acquire Jemalong solar project development (JSP) for an undisclosed price.
Located near Forbes in the central west region of New South Wales (NSW), JSP is a 50MW project expected to complement Genex’s existing solar and hydropower projects in North Queensland.
The acquisition is reported to be in line with the company’s long-term strategy to expand its portfolio of assets, as well as diversify into other regions within the national electricity market.
Genex Power CEO James Harding said: “As a result of the strong revenues earnt to date from the company’s 50MW Kidston solar project (KS1), we are able to utilise our cash reserves to diversify our project portfolio into NSW and create a stronger revenue pipeline.
“The Kidston stage two pumped storage hydro and solar project remain the principal focus of the company, and we continue to make significant progress towards finalising the remaining components necessary to achieve financial close.”
JSP is said to have obtained necessary land and development planning approvals and is progressing towards finalising the grid connection works.
The completion of the acquisition is subject to a number of condition precedents (CPs) including achieving satisfactory generator performance standard (GPS) approvals from the Australian electricity market operator (AEMO) for the project.
Genex intends to finance construction either on a sole merchant basis or under a potential offtake arrangement.
Harding further added: “The Jemalong Solar Project offers a good opportunity to create a step change up in revenue and both expand and diversify the company’s portfolio as we complete the development of Stage 2 at Kidston.
“On behalf of Genex, we wish to thank the vendor, Vast Solar Pty Ltd, and their adviser, Energy Estate, for the progress to date on JSP and look forward to working with them to achieve the final conditions precedent necessary for financial close.”
The company has plans to reach a final financing decision closer to financial close, which is expected in H1 2019.