Leading global law firm Herbert Smith Freehills Kramer (HSF Kramer) has advised Edify Energy on the first-in-market $3 billion development and project financing of Smoky Creek and Guthrie's Gap Solar Power Stations (the Projects) in Central Queensland.
The Projects are among the largest solar and battery hybrid developments currently under construction in Australia comprising approximately 720MWp of solar generation capacity and 600MW / 2,400MWh of battery storage. The financing includes around ~$3.35 billion in committed funding across the two projects, and other initial approved projects.
The Projects incorporate reverse DC-coupled architecture at a significant scale and are underpinned by long-term solar and battery hybrid services agreements with Rio Tinto, alongside support from the Australian Government's Capacity Investment Scheme.
The HSF Kramer Projects, Energy & Infrastructure (PEI) and Finance team advised on all aspects of the development, procurement, and project financing of the transaction, including the delivery of an innovative financing structure. The structure brings together long-term commercial arrangements, government-backed support mechanisms and a newly established greenfield financing platform.
Lead energy partner, Alison Dodd said: "This transaction demonstrates the increasing maturity of Australia's renewable energy market and financing structures. In this instance, innovative technology solutions and contracting structures have come together with sophisticated financing structures, offtake arrangements and government support mechanisms to enable the successful delivery of projects of this size and complexity. We are proud to have worked alongside Edify Energy and all stakeholders to support Queensland's energy future."
Lead finance partner, Gabby Herron-Cartwright added: "This transaction marks an important next phase in the evolution of renewables project financing in the Australian market. The emergence of greenfield portfolio financing is enabling developers to bring large-scale projects to market more quickly and efficiently, with the cross-collateralisation across assets also strengthening the overall risk profile for both sponsors and lenders."
The cross-practice energy and finance teams were led by partners Alison Dodd, Gabby Herron-Cartwright, Elizabeth Charlesworth, Jon Evans, Cassandra Wee, Skye Kirby and Luke Simpson. And, supported by Elise Bulla, Jarrod Gook, Andrew Thai, Elizabeth Papapetrou, Shruti Janakiraman, Shanya Singh, Monty Hannaford, Timothy Weber and Callon Robotham.
Other recent examples of HSF Kramer's market-leading work in the renewables sector include the firm advising:
- Aggreko Australia Pty Ltd in connection with the development of a hybrid power facility to supply electricity to the Surat Gas Project (SGP) North, in Queensland's Surat Basin.
- A syndicate of lenders on the project financing of AMPYR Australia's 300MW/600MWh Wellington Battery Energy Storage System (BESS), which will be located in Wellington, NSW.
- A syndicate of lenders on the A$460 million construction finance facility for Akaysha Energy's Elaine Battery Energy Storage System in Victoria, Australia.
- Tilt Renewables on the procurement of the 108 MW Waddi Wind Farm in Western Australia and the 288 MW Palmer Wind Farm in South Australia.
- AGL Energy (AGL) on the development of its 500 MW / 2,000 MWh Tomago Battery Energy Storage System, to be located in the Hunter region of NSW.
- Squadron Energy on the financial close of its A$1 billion facility from 10 banks for the 100-turbine, 450MW Clarke Creek Wind Farm located in Queensland, Australia .
- EnergyAustralia on its development and project financing of the 350 MW / 1400 MWh Wooreen Battery Energy Storage System in the Latrobe Valley, Victoria.
- The international syndicate of lenders on the $750 million green portfolio financing for ACEN Australia's clean energy projects.