Off-grid hybrid power specialist secures $2 billion to boost renewables expansion

Perth headquartered off-grid power specialists Pacific Energy says it has secured a $2 billion refinancing and equity raising, providing the company with approximately $1 billion worth of growth capital to support its future expansion.

The company’s CEO Jamie Cullen says the refinancing and fund raising will boost its growth plans, particularly on the east coast of Australia, and in light for growing demand for renewable solutions in off-grid and remote locations.

“This boost to our growth capital puts us in a strong position to advance our robust pipeline of renewable energy projects and take full advantage of the increasing opportunities in Australia’s transition to a low-carbon economy,” he said in a statement.

“We’re in a leading position to deliver long-term value for our customers, and at the same time, move the dial in a meaningful way towards a more sustainable future.”

Pacific Energy’s projects include the recently completed Tropicana project, described as the largest off-grid hybrid power system to power a mine in Australia, that included four 6 MW wind turbines, a 24 MW solar farm, and a 13MW grid-forming battery energy storage system.

“The combination of these specialised capabilities and significant levels of prevailing demand for renewable and hybrid solutions in Australia’s remote energy sector have driven material growth in Pacific Energy’s portfolio,” said Matthew Zwi, a senior principal at QIC, Pacific Energy’s asset manager.

“With this growth capital raise completed and the business competitively refinanced, Pacific Energy is well positioned to capitalise on customer demand and deliver its growth pipeline, which includes a range of renewable and hybrid projects in Western Australia as well as on the East Coast.”

The company says seven new lenders – including ANZ, joined the existing syndicate of banks to form a 15-bank strong lending group, which already included Westpac and NAB.

The new debt facility provides improved terms and includes a reduced funding cost and extended debt maturities with diversified tenors of 5, 7, and 10 years – enhancements that the company hopes will provide it with long-term financial flexibility and reduced refinancing risk.

The refinancing also included $550 million in green loan tranches, and a lower cost of capital. The debt refinancing was paired with a successful equity raise totalling $370 million, backed by QIC, which acquired Pacific Energy in 2019, and additional institutional clients in Australia, Asia, and North America.