New Energy Solar has signed an agreement to acquire 87MW Beryl Solar Farm (Beryl) from a subsidiary of First Solar.
Beryl solar farm will be located 5km west of Gulgong in New South Wales, Australia. Soon after the construction begins, New Energy Solar will acquire 49% stake in the solar farm. Once the construction is completed, the company will acquire the remaining 51% stake in the solar farm.
The solar farm is expected to generate about 134,000MWh of clean electricity per year, once it is fully operational and it will be sold to Transport for NSW (TfNSW) under a 15 year power purchase agreement (PPA). This will help TfNSW to meet its electricity requirements of the Sydney Metro Northwest railway.
New Energy Solar CEO John Martin said: “Beryl, NEW’s second investment in Australia, will further enhance the scale and contracted cashflows of our Australian portfolio.
“The 15-year PPA term, longer than PPAs currently offered in the Australian market, diversifies our contract tenor profile and underpins investor returns.
“Following the Manildra acquisition last month, we are delighted to be consolidating our relationship with First Solar through this second sizeable transaction in the Australian market.”
Total construction cost of the solar project is expected to be about A$187m ($138m). But, New Energy Solar has not disclosed the acquisition price.
Subject to customary satisfactions, New Energy Solar will acquire Beryl on a levered basis, funded by its cash reserves, and existing and new debt facilities.
New Energy Solar stated this project, being the second Australian acquisition after Manildra, is expected to account for about 20% of its portfolio.
Downer Utilities Australia started the construction of the solar farm in May this year. First Solar’s latest Series 6 modules are being used.
The solar farm is expected to generate about 199,000MWh of electricity in the first operating year, powering more than 25,000 Australian homes.