Italian based Enel Green Power, the joint owners of the largest solar farm in South Australia, have bought a neighbouring site that could host a big battery and further the transition of the local community away from the coal plant that once dominated the region.
The deal has been struck with Reach Energy, which developed the original Bungala 1 and Bungala 2 solar projects, which they sold to Enel in 2018 and which together make up the biggest solar project in the state at 220 MW, and which were for a long time were the biggest in the country.
The Bungala 3 site could support another 80 MW of solar, but is more likely to be used for a 300 MW big battery, given the capability of the dedicated 132 kV grid connection from Davenport to the sub station in place.
Enel Green Power owns 50 per cent of the two solar farms and has bought the stage 3 site outright, but could well down an interest to the Dutch Infrastructure Fund which is now the joint owner of the two solar projects.
Reach CEO Tony Concannon says the sale continues the transition of the site away from the coal fired generators that were once located nearby, and towards renewables. The region already plays host to the Lincoln gap wind farm and Iberdrola’s wind and solar renewable energy hub, the largest of its type in the country.
Concannon says another significant feature of the development is the support of the landowners, the Bungala Aboriginal Corporation, and the Port Augusta community.
“With all the furore of the social licence, it’s important to note that this has the support of not just the landowners but also the Port Augusta community, which has witnessed a significant transition from the Northern coal fired power station to a major renewable energy hub.
Renew Economy has reached out to Enel Green Power for comment.
The output for Bungala 1 and Bungala 2 is contracted to Origin Energy, which also bought the Yarrabee solar project in NSW from Reach Energy in early 2022, which could be developed into a 900 MW solar farm.
Read said PwC Australia played a significant role in the transaction, providing integrated advisory services for the project’s duration including M&A, commercial, financial, tax and legal advisory.
