Equis to invest $302m in Australia solar projects
Equis Energy has agreed to invest A$400 million ($302 million) in two solar energy projects in South Australia and Queensland, marking the Singapore-based renewable energy-focused GP’s first investment in Australia.
The 100-megawatt South Australia plant, located near Tailem Bend, will be built alongside a diesel-fired power station owned by Snowy Hydro, an Australian integrated energy company which owns the Snowy Hydro-Electric Scheme. Equis said the Tailem Bend project will be one of the lowest-cost solar projects in Australia to date, supplying power at around 40% less than prevailing South Australian market prices. Snowy Hydro agreed to buy all the power produced from the plant for at least 22 years.
"By developing the Tailem Bend Solar Project and Snowy Hydro diesel projects together, the combined system will have the capability of providing stable power any time of the day across the entire year," Equis's CEO David Russell said in a statement.
Meanwhile, Equis has gained approval to build another 100-MW solar project in Collisville North substation in Queensland, where construction is expected to begin this year. In addition to these projects, Equis has also secured land rights over an additional 2,000 hectares allowing for an additional 1,000 MW of large scale solar projects to be constructed over the near term.
The Australian projects will bring the number of renewable energy projects under construction by Equis to 49, having completed a further 33 utility scale renewable energy projects in Asia over the last three years. The firm currently owns a portfolio of over 3,623 MW of renewable energy across Asia including wind power, solar power and hydro power.
Equis is currently investing from its second fund, which it closed in 2015 at $1 billion, while raising a $300 million fund for follow-on investments to its first fund and a $400 million vehicle for two existing platform investments.
The firm signed a wind power offtake deal with an Indonesian electricity supplier as part of a $500 million renewable energy project package last September. This followed the launch of a Philippines-based solar project touted as the largest in Southeast Asia.
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