South Australia wind project edges closer to financial close after winning grid connection approval

The 256-megawatt (MW) Carmody’s Hill wind farm, one of the winners of the recent federal underwriting agreement, has taken an important step towards reaching financial close after obtaining its connection approvals.

The project, owned by Aula Energy, will see around 42 wind turbines built along the ridgeline of the Campbell Range near the Bundaleer Forest, south-east of Port Augusta, and has an option to add a 123 MW big battery.

It was one of eight wind projects to win an underwriting agreement in the federal government’s Capacity Investment Scheme, and one of the advanced projects that could break the country’s year-long drought in new wind farm financing.

Another in contention to reach FID in coming months is the Palmer Hill wind project owned by Tilt Renewables, which has also secured a $2.25 billion refinancing of its debt facilities which could also pave the way to reaching FID on its project.

Aula announced on its LinkedIn account on Wednesday that Carmody’s Hill wind farm had received its Negotiated Generator Performance Standards (NER 5.3.4A) from the local transmission company ElectraNet and the Australian Energy Market Operator (AEMO).

The news comes only nine months after submission of the wind farm’s connection application, and a few weeks after the CIS tender win.

“This is an outstanding achievement and another major step forward on our path to financial close,” the company said on LinkedIn.

“Carmody’s Hill is the first and only wind farm in South Australia to receive a 5.3.4 letter in 2025 and the first wind farm to connect via a Designated Network Asset (DNA) in ElectraNet’s network.”

Aula Energy will now work over the coming days with the ElectraNet team to close out the connection agreements and work on an Offer to Connect, important steps as Aula progresses towards reaching a final investment decision.  

Earlier in the month, Aula Energy said that it expected to reach financial close before the end of the year, with construction slated to begin in early 2026.

If you would like to join more than 26,000 others and get the latest clean energy news delivered straight to your inbox, for free, please click here to subscribe to our free daily newsletter.