Nexif joins growing list of investors quitting Australian renewables

Nexif Energy, owned by the US-based Denham Capital, is the latest major investor to put its Australian renewable energy assets on the sales block.

According to a report in The Australian on Monday, Nexif has appointed JP Morgan to handle the sales process, which will include its partially complete Lincoln Gap wind farm, the largest in South Australia, as well as the Snapper Point peaking generators and assets in south-east Asia.

The move by Nexif has been the subject to some speculation in recent months, mostly in business gossip columns which act as kite-flying platforms for investment bankers. If an idea sticks, it will go ahead.

That seems to be the case with the Singapore-based Nexif, although company executives refused to comment on the report, either to confirm or deny.

Nexif’s flagship asset in Australia is the Lincoln Gap wind farm, which has completed the 126MW first stage, is currently adding another 86MW of wind capacity, and has plans and approvals for another 252MW.

It also has built a 10MW/10MWh battery at the site, but that has not yet been switched on because it has been caught up in delays caused by new modelling required from Nexif’s decision to switch turbine supplies mid way through its project.

Nexif also signed a long term lease for the state government’s “emergency” diesel generations, which will be converted to gas generators and operate in the market as “firming” assets.

The Nexif asset sale continues a series of exits in Australian renewables. UK-based John Laing has sold its wind assets and will sell its solar assets next year, and Elliott Green is also placing its three solar farms in Queensland and NSW up for sale.

On Monday, New Energy Solar announced buyers for its two NSW solar farms, and FRV is also reported to be seeking an equity partner for its portfolio of eight solar farms.

Elsewhere, Iberdrola has taken over Infigen Energy and Powering Australia Renewables is to take over the Australian assets of Tilt Renewables. Last year, Windlab was taken private by the Andrew Forrest controlled Squadron Energy.