Greek developer reaches financial close on 120MW of NSW solar projects

Greek industrial giant Mytilineos has marked a solar milestone in what it describes as “one of the most demanding and competitive markets in the world,” after reaching financial close on three 40MW(dc) PV projects in New South Wales, a first for the company in Australia.

The Athens-based company, which made its strategic entry into the Australian renewables market in 2019 with the purchase of the Corowa, Junee, and Wagga solar farms, said on Thursday that it had secured financing for the 120MW solar portfolio with lenders ANZ, Societe Generale and Westpac.

Mytilineos said that despite the “adversities and difficulties” around the Covid-19 pandemic, the company’s Renewables & Storage Development (RSD) Business Unit had successfully completed construction of the projects in the first half of 2021.

Junee solar farm. Source: Mytilineos

Once operating at full capacity, the solar farms will produce 220GWh a year, with the majority of the power and large-scale generation certificates (LGCs) from the three projects going to Australian supermarket giant Coles via a 10 year power purchase agreement, struck in 2019.

The Corowa solar farm is located on the southern border of NSW, west of Albury-Wodonga. Junee is north-east of Wagga Wagga, outside of the town of the same name, and the Wagga solar farm is nearby, around 6km from the Wagga Wagga town centre.

Mytilineos said the financing for the solar farms had been structured in a way that allowed for money to be drawn for each project at its respective Commercial Operation Date (COD), via a $A95 million term loan and $A9 million for ancillary facilities.

“Australia is a key market for Mytilineos’ global renewables development strategy, extending across the Asia-Pacific, Europe, and Latin America regions,” said Nikos Papapetrou, the general manager of the company’s RSD Business Unit stated.

The beginnings of output to the grid from the Junee solar farm. Image credit: Paul McArdle

The financing deal comes shortly after the Junee solar farm began sending electricity to the grid, as illustrated in the graph above.

“Australia is a key market for Mytilineos’ global renewables development strategy, extending across the Asia-Pacific, Europe, and Latin America regions,” said Nikos Papapetrou, the general manager of the company’s RSD Business Unit stated.

“We are pleased with the trust given to the company and to our vision in the region and we look forward to many more successful financings,” he said.

Westpac’s managing director of corporate and institutional banking, Alastair Welsh, said the bank was looking forward to building on its partnership with the Mytilineos Group as it grew its Australian footprint.

“We applaud Mytilineos Group’s commitment to develop sustainable energy solutions, and in turn support Australia’s energy transition,” Welsh said.

The company’s other Australian projects include the 110MW Moura Solar Farm in Queensland, and the 75MW Wyalong and 22MW Wagga North solar farm, both in NSW.

Mytilineos said the remaining projects in its Australian portfolio were reaching the maturity stage and would be ready to start construction during 2022, further consolidating the company’s position in the wider Australia-Pacific market.

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