Two big Australian solar projects get green light after securing $540m in funding

Solar developer Lightsource bp is ready to kick off full construction of its Wellington North and Wunghnu solar projects in Australia, which should see combined generation of 515 MWdc in commercial operation in 2024, after securing $540 million in financing from various lenders.

The largest of the two projects, Wellington North, near Dubbo in News South Wales, is earmarked to deliver 425 MWdc of solar-generated electricity, making it one of the largest photovoltaic projects built to date in Australia.

Wunghnu, in Victoria’s Golburn Valley, is being designed with an installed capacity of 90 MW.

Financing for both projects was obtained from ANZ, ING, Mizuho, NORD/LB, and Westpac, according to Lightsource BP, 50 percent owned by oil giant BP.

“This milestone now sees Lightsource bp become the leading solar developer and owner in Australia on a MWac1 basis,” Adam Pegg, managing director, Lightsource bp Australia and New Zealand, said in a statement.

“It is an incredible effort to reach financial close and construction on 841MWac/1,037MWdc since setting up the business in Australia in 2018.”

Spanish solar plant construction firm Gransolar Group in September said it was taking the lead role in building both projects after reaching agreements with Lightsource bp – 50 percent owned by oil giant BP – to act as engineering, procurement and construction (EPC) contractor

As reported by RenewEconomy, Lightsource already holds power purchase agreements (PPAs) with Engie, Orica and Mars Australia covering both projects.

Together with Wellington North and Wunghu, Lightsource bp now has five projects operating or under construction across New South Wales, Queensland, and Victoria.

“Lightsource bp’s development of two important solar assets supports Australia’s energy transition and will boost critical energy supply,” Aaron Ross, head of project and export finance for ANZ said.

“Greenfield renewable projects align with ANZ’s strategy and target of funding and facilitating A$100 billion of sustainable solutions for customers by 2030.”

The hybridisation of renewables to complement solar – including battery storage, co-location of wind and integration with green hydrogen production – would become increasingly important to the future energy mix and in driving the energy transition, Lightsource BP said earlier this year, adding a further 3 GWp was planned for Australia and New Zealand.