Synergy joins DIF and Cbus to build large scale renewable energy projects
Synergy has entered a joint venture with a world-renowned infrastructure investment company and an Australian super fund giant to form ‘Bright Energy Investments’ to build up to 210MW of large-scale renewable energy projects in the South West Interconnected System (SWIS).
The joint venture with DIF and Cbus will ensure that Synergy meets its Large-Scale-Renewable Energy Target (LRET) obligations by 2020.
‘Bright Energy Investments’ will commence its development pipeline by constructing Stage Two of the Greenough River Solar Farm (GRSF2), and refurbishing the existing Albany Grasmere Wind Farm (AGWF). Bright Energy Investments also holds development rights for the Warradarge Wind Farm (WWF) and will now commence preparatory work for the project.
DIF and Cbus will each hold a 40.05 per cent interest in Bright Energy Investments, with Synergy holding the remaining 19.9 per cent.
DIF has a total of $8 billion in funds under management globally and has already invested in three renewable developments in Queensland, South Australia and the ACT.
Cbus is Australia’s leading Industry Super Fund for the building, construction and allied industries, with more than $43 billion of funds under management.
Synergy CEO Jason Waters said the joint venture and the subsequent development of these large scale renewables projects was a significant milestone for Synergy.
“Partnering with DIF and Cbus to develop two new renewable energy projects for Western Australia was the best commercial decision for Synergy and the state,” Mr Waters said.
“Through its involvement in Bright Energy Investments, Synergy will, once again, partner with private sector equity to develop renewable energy projects in the SWIS that deliver value for the state and electricity consumers.”
Based on current estimates, the development of GRSF2 and the proposed development of WWF prior to 2020, will create approximately 200 new construction jobs in WA’s mid-west region.
DIF Managing Director Marko Kremer said he was delighted to partner with both Synergy and Cbus in delivering these world-class renewables projects.
“DIF has been undertaking a strategic investment strategy in Australia to deliver long-life, high value returns in the growing renewable energy sector,” Mr Kremer said.
“We are pleased to partner with the WA State Government through Synergy and look forward to a mutually beneficial long term relationship.”
Cbus CEO David Atkin said that Cbus is a long-term investor focused on delivering strong retirement outcomes for its members through sustainable investments that strengthen and benefit the communities in which they live.
“We are delighted to be partnering with Synergy and DIF on this important pipeline of renewable energy projects that will make a meaningful contribution to the West Australian economy, creating local jobs and supporting the development of sustainable power for generations,” Mr Atkin said.
“This deal represents the strong alignment of long-term interests of the parties that will deliver for Western Australian communities.”
Macquarie Group was appointed financial advisor to Synergy for the transaction, with Herbert Smith Freehills acting as legal advisor.
Synergy has awarded diversified engineering and infrastructure company RCR Tomlinson (ASX: RCR) the Engineering, Procurement and Construction (“EPC”) contract for the 30MW expansion of GRSF2.
RCR’s scope of works for the project includes engineering, procurement, construction and commissioning of the expanded solar farm, with an immediate project start and targeted completion in Q2, 2019.
ENDS
Media contact:
Carolyn Herbert
Synergy
0447 195 714/ (08) 6282 7319