UK-based GP acquires Australia solar project
UK private equity investor Foresight Solar Fund (FSF) has taken a 100% interest in an Australian solar farm and a 49% interest in each of two related projects. It coincides with a A$55 million ($43 million) investment from Australia’s Clean Energy Finance Corporation (CEFC).
FSF’s total equity commitment in the transaction is A$74 million, according to a release. The GP has taken 100% control of the Oakey 2 project, which is expected to be commercially operational by November and capable of powering more than 23,000 homes in Queensland.
Stakes of 49% were acquired in Oakey 1 and Longreach Solar Farm, both of which are also located in Queensland. The total portfolio represents a peak power capacity of 117 megawatts.
All three projects have been backed by CEFC and are being developed by NASDAQ-listed Canadian Solar. CEFC’s latest investment of A$55 million represents a financial close for Oakey 2. CEFC previously contributed to debt facilities worth a combined A$65 million for Longreach and Oakey 1 alongside Bank of Tokyo-Mitsubishi UFJ.
Longreach and Oakey 1 are expected to be grid connected by March and September, respectively. Both projects have entered into 20-year electricity offtake agreements with the Queensland government. Oakey 2 will be connected to the state power grid through a shared transmission line with Oakey 1.
FSF invests predominantly in UK solar projects and currently maintains a portfolio of 621MW, of which 475MW is operational. It claims to have raised GBP313.2 million ($423 million) from institutional and private investors since 2013.
The firm’s parent company Foresight Group has a presence in Sydney and manages the A$200 million Australian Bioenergy Fund, which invests energy-from-waste projects that are also backed by CEFC. The fund typically makes investments in a range from A$2-50 million.
Recent activity by CEFC includes a partnership with Palisade Investment Partners that aims to invest a portfolio of Australian renewable energy projects valuing A$1 billion. Last year, CEFC participated in a A$11.5 billion funding round for GreenSync, a Melbourne-based company that develops smart software for use in electricity grids.
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