Works begin on second stage of Golden Plains wind farm – largest in Southern Hemisphere
Golden Plains wind farm. Source: TagEnergy
Sophie Vorrath
Jun 19, 2024
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Renewables
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Construction is underway on the second stage of what is said to be the largest onshore wind currently being developed in Australia, and the southern hemisphere, after TagEnergy reached financial close on part two of its $4 billion Golden Plains Wind Farm in Victoria.
TagEnergy says works will begin on the final 577MW stage of the massive 1,333MW project after securing non-recourse finance from a global group of lenders including the federal government’s Clean Energy Finance Corporation.
Australia’s Commonwealth and Westpac banks, Denmark’s Export & Investment Fund, Japan’s Mizuho Bank, France’s Natixis Bank, the Bank of China and Germany’s Deutsche Bank also helped finance the project.
The CEFC commitment to stage two of Golden Plains takes its debt finance in the project to some $350 million, alongside the previous investment of $222.5 million in stage one.
“We are now in the critical decade to reduce emissions and Australia must urgently develop the assets that will deliver more clean energy to the grid,” said CEFC CEO Ian Learmonth.
“Golden Plains Wind Farm will play a significant role in helping Australia reach net zero as well as replacing the energy supply that will be lost when Yallourn coal fired power station retires in 2028.”
Learmonth says the green bank used the same “bridge to contract” finance strategy that had helped fast track construction of Golden Plains Stage 1, which has son far contracted 60 per cent of its energy and green certificates – 20% to digital infrastructure company Equinix and 40% to federal government-owned gentailer Snowy Hydro.
“The CEFC capital will enable construction to begin before Stage 2 secures power purchase agreements, ensuring faster deployment of clean, green power to Victorian consumers,” Learmonth said.
Vestas will again supply the turbines for the stage 2 project, 93 of them, while contracts were also extended for AusNet Services to undertake the grid connection works and WestWind Energy to be the asset manager.
Andrew Riggs, TagEnergy’s managing partner in Australia, says the delivery of the project has been buoyed by federal Labor’s Capacity Investment Scheme, which is currently seeking 6 GW of new wind and solar capacity in its first major tender.
“The supportive policy landscape created by the CIS has given us confidence to start construction of Golden Plains Stage 2 now,” Riggs said.
“Commencing construction will maximise project delivery certainty and strengthen the competitiveness of our bid in the upcoming CIS auction.”
Riggs says the cooperation and strong progress of the teams working on stage one, as well as the pace of the assessment and approval process for grid connection, have also helped ensure the project’s success.
“The diligence and expertise of the grid connection teams at Vestas and AEMO Victoria who leveraged best practices developed during the adjacent 756MW Golden Plains Wind Farm Stage 1 connection process reduced the assessment period from nine months to five months,” he said.
“This significant achievement is a great contribution to the speed and economics of Australia’s energy transition.
“This mega-project materially improves Victoria’s energy security, puts downward pressure on electricity costs and dramatically reduces carbon pollution. Together with our partners, we are accelerating the energy transition.”
TagEnergy says that with both stages of the huge project now underway, more than 350 people are expected to be working on site.
Golden Plains Wind Farm Stage 1 is expected to start producing green energy in the first quarter of 2025, with Stage 2 to follow in mid-2027. Once complete, Golden Plains Wind Farm will be the biggest in Australia, delivering 9% of Victoria’s energy, or enough to power more than 750,000 homes – the equivalent of every home in regional Victoria.
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