TagEnergy has signed a major Renewable Energy Purchase Agreement (REPA), under which Snowy Hydro will take 40% of the Green Energy Certificates (GECs) generated by the 756 MW first phase of the Golden Plains wind farm.
Financial Innovation: TagEnergy Completes Unique Transaction for Golden Plains Wind Farm
This transaction is the first CAE for the Golden Plains wind farm since the first stage of the 1300 W megaproject near Geelong, Victoria. It reached financial close in November 2022 on a merchant basis, which was unique at the time. It comes as TagEnergy negotiates further PPAs for the project, which has generated significant interest for its quality and location.
Franck Woitiez, Managing Director, TagEnergy said that the financial closing of the Golden Plains East wind farm without the need for PPAs proved the effectiveness of its innovative investment approach. This transaction is the first PPA for the Golden Plains wind farm since the first step. A 300 MW project near Geelong, Victoria, reached financial close in November 2022.
It comes as TagEnergy negotiates further PPAs for the project, which has generated significant interest for its quality and location. Franck Woitiez, Managing Director of TagEnergy, said that the financial conclusion of the Golden Plains East wind farm without the need for PPAs proved the effectiveness of its innovative investment approach.
“Today, this historic PPA with Snowy Hydro proves our strategy of progressively contracting power generation during construction and operation. It also testifies to the confidence of major industry players, such as Snowy Hydro, in our expertise in large-scale renewable energy projects,” said Woitiez.
“We are proud to enter into this agreement with Snowy Hydro as we both work to ensure energy security and accelerate the transition to renewable energy in a rapidly growing industry,” he said.
Sustainable Synergy: Snowy Hydro and TagEnergy’s Path to Clean Energy
The transaction has enabled Snowy Hydro to secure a significant part of its energy and LGC requirements with a quality project at an advanced stage.
Snowy Hydro Managing Director Dennis Barnes said, “Our partnership with TagEnergy is an important step in supporting the decarbonization of the national electricity market and further facilitating Australia’s transition to renewable energy.”
Snowy Hydro’s Commercial Director, Gordon Wymer, added: “TagEnergy has successfully developed an investment structure that has produced optimal results for all stakeholders. This has enabled Snowy to continue to expand its ability to deliver clean, green and cost-effective renewable energy to its customers, and paves the way for further cooperation with TagEnergy on other developments.”
Construction of the first phase of the $2 billion, 756 MW development with 122 turbines officially began in April 2023 after months of preliminary work, including road improvements. It is scheduled to start producing renewable energies in the first quarter of 2025. The annual reduction in emissions is estimated at an average of 770,000 tonnes of CO 2-e, or more than 23 million tonnes of CO 2-e over the 30-year life of the project.
