Australasian electricity generation company Tilt Renewables has reached the financial close for the 336MW Dundonnell Wind Farm (DDWF) in Western Victoria, Australia.
The project will be built with an estimated investment of A$560m ($404m), which will be funded by a combination of debt and equity, with equity raising likely to take place early next year.
Construction works at the site are slated to begin early next year and is expected to be completed in 2020.
For this project, Tilt Renewables has partnered with Vestas to provide turbines and construction services under a full engineer, procure and construct (EPC) contract.
It has also partnered with AusNet Services for the transmission connection components, which will be delivered under a build, own and operate (BOO) model.
Tilt Renewables chief executive Deion Campbell said: “These partners are competent and experienced market participants with whom we have worked successfully on other projects, and we are confident they will deliver the expected outcomes for this hugely important project.”
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The project is expected to increase Tilt Renewables asset base by more than 50% and support the company’s strategic goal of doubling the assets under its management.
The Victorian state government and Snowy Hydro have contracted nearly 87% of the power produced by the windfarm.
The project was awarded a support agreement under the Victorian Renewable Energy Auction Scheme, and an offtake agreement.
Campbell added: “The support agreement from the Victorian state government provided sufficient revenue certainty for the project to proceed to the investment decision, and also for Snowy Hydro to be confident the project would proceed.
“We are extremely pleased to work with the Victorian government to help them achieve their renewable energy target and together deliver significant economic, social and environmental benefits to regional Victorians.
“The addition of a second offtake for 50% of the project with such an experienced and high-quality industry participant as Snowy Hydro adds to our excitement.”