Enel Green Power S.p.A. and Dutch Infrastructure Fund ("DIF") has closed an agreement to acquire Bungala Solar One, the first 137.5MW phase of the 275MW Bungala Solar PV project in Australia, from Bungala Solar Holding Pty Ltd.
The purchase of Bungala Solar Two, the second phase of the project, is expected to be closed in the third quarter of this year. The Bungala Solar project is located near Port Augusta in South Australia.
"The acquisition of Australia's largest PV project, which takes us onto a new continent, is an important step forward for the Enel Group," said Francesco Starace, Enel CEO and General Manager. "The Australian renewable energy market is characterised by abundant resources and growing demand. Enel will work to harness these resources and contribute to the Australian economy, generating shared value for all our stakeholders through a strategy that delivers industrial growth built upon a foundation of sustainable development."
The joint venture's total investment in the 275MW project is around 315 million US dollars, including project construction, with Enel contributing around 157 million US dollars. The total investment will be financed through a mix of equity and project finance with a consortium of local and international banks. The project is fully contracted with a long-term power purchase agreement with Origin Energy, a major Australian utility.
Construction works at Bungala Solar One are expected to begin by mid-2017, followed by Bungala Solar Two, whose construction will start by the end of this year. The overall 275MW project will be fully operational by the third quarter of 2018.
The Bungala Solar project is designed to generate around 570GWh a year, equivalent to the consumption needs of approximately 82,000 Australian households, avoiding the emission of about 520,000 tonnes of CO2.