DP Energy has appointed EY and Baker & McKenzie as their financial and legal advisors on their hybrid wind and solar Port Augusta Renewable Energy Park in South Australia.
“Making these appointments is a crucial step towards achieving our objective of financial close by the end of Q1 2017,” explains Andrew Smith, Chief Investment Officer, DP Energy. “Both of these businesses bring the right skill set to help us deliver this ground breaking project to the Australian marketplace.”
“EY is pleased to be supporting DP Energy on its expansion into Australia. Our team brings deep international expertise in renewables and our leading Australian renewable energy practice together to progress the Port Augusta Renewable Energy Park to financial close. The characteristics of this hybrid renewable energy solution has the potential to deliver a range of benefits to the South Australian market.” states Matt Rennie, EY’s Global Head of Transactions in Power & Utilities.
“Baker & McKenzie is excited to be assisting DP Energy with this unique combined wind and solar project that will help South Australia in meeting its ambitious low carbon energy target,” says Paul Curnow, Partner, Baker & McKenzie.” As advisors to wind and solar projects in Australia and around the world, we are pleased to be contributing our legal and regulatory know-how to the success of the Port Augusta Renewable Energy Park at a time when more and more renewable energy projects demonstrate their important role in assisting Australia in meeting its climate targets.”
The ~375MW project received Development Approval from the South Australian Government in early August. When fully commissioned, it will generate approximately 1,000 gigawatt hours (GWh) of clean renewable energy directly into the national electricity grid per year, enough to power about 200,000 homes and save 470,000 tonnes of carbon dioxide emissions each year. Located near the former Northern Power Station, the project will create much-needed employment in the energy sector for the Port Augusta region.
The project CAPEX is estimated to be approximately ~AUS$700 million, and will create 250 jobs over construction – peaking at some 600 over the height of that phase of the development; and 15-20 ongoing jobs. The build will involve using local South Australian businesses wherever possible, an approach that DP Energy adopts across all the jurisdictions within which it operates. DP Energy looks forward to working with the local community to find innovative ways in which to maximise the local benefits both through employment generation and by facilitating local supply chain opportunities.
The project’s added significance turns on its unique generation profile: the wind resource (installed capacity ~200MW) is primarily driven by the temperature difference between the land and sea rather than by weather systems, and hence exhibits a regular early evening peak which is well aligned with the daily peak demand for electricity.
This effect is also strongest in the summer when temperature differences are at their greatest, meaning that annual energy generation also peaks when it is most needed. When this evening wind generation temperature effect is coupled with large-scale solar generation (~175MWac – which has a midday peak) a good match to overall demand can be achieved thereby supporting the electricity network and placing downward pressure on wholesale prices.
DP Energy has delivered successful projects in Canada, the Republic of Ireland, Northern Ireland and Scotland and, in addition to the Port Augusta Renewable Energy Park in South Australia, plans for other projects in Australia, and each of these jurisdictions. – see www.dpenergy.com/projects/