GPG Australia receives strong support for the management and development of our project portfolio in Australia through financing of $2.3 billion, equivalent to over €1.4 billion. The financing arrangement has been formalized with 11 international banks and is based around our portfolio of operating and development projects in Australia.
The financing facility is structured around our portfolio of eight operating assets, six wind farms, a battery storage project, and one solar-hybrid project with storage, two photovoltaic plants under construction, and one solar-plus-battery hybrid project under development. In total, GPG Australia closes the year with 1 GW of operational projects, in addition to 360 MW under construction and 510 MW ready for construction.
Steven Fernández, general manager of Financial Markets and Corporate Development, said that “this agreement is a clear reflection of the confidence that financial institutions have in our ability to lead the energy transition, supported by the hard work of a team committed to a more sustainable future”.
This financing is in addition to the €1 billion loan recently agreed with the European Investment Bank (EIB) to support investments in new solar PV and onshore wind power plants, as well as the repowering and hybridisation of existing plants in Spain. The loan, of which the first tranche of 400 million euros has been signed, will also be used to a lesser extent for investments in batteries for the storage of renewable energy.
Financial solidity
Thanks to our agility in managing available financing opportunities, our total liquidity remains robust, with €9.7 billion in cash and cash equivalents, and available credit lines as of the end of the first half of the year. This solvency, together with cash generated by our operations, ensures we can comfortably meet our financial obligations over the coming years.
This strength was recognized by the market last September with the issuance of two bonds, each worth €500 million, with maturities of 6 and 10 years respectively, and a significant oversubscription from the investment community. The strong interest generated, with a total of 233 investors participating in the issuance, enabled us to secure highly competitive financing terms and improve our capital structure by extending the average maturity of our debt.
Australia, a key country in the company’s development strategy
In 2023, we celebrate the 15th anniversary of our presence in Australia, a key country in the energy transition. Our project portfolio in Australia represents a combined installed capacity of over 1.8 GW: 758 MW of wind power, 818 MW of photovoltaic capacity, and 245 MW/600 MWh of energy storage.
Currently, GPG operates four wind farms in the country: Berrybank 1, Berrybank 2, Crookwell 2, and Hawkesdale. The Hawkesdale Wind Farm, located in Victoria, has been in commercial operation since late August and has a power purchase agreement with Amazon for the energy it produces. In addition to these wind projects, we also commissioned the ACT Battery Project in 2023, marking our first storage facility in the world.
We continue to expand our pipeline of projects under development and construction, which will significantly increase our capacity in the coming years. This week, we inaugurated the Crookwell 3 and Ryan Corner wind farms, the latter being our largest wind installation in Australia with a capacity of 218 MW. Additionally, we will soon inaugurate the Cunderdin solar-plus-battery hybrid plant. This project is a clear example of our commitment to the country as it is the first hybrid solar project developed in Australia, representing an investment of 172 million euros. The plant will have an installed photovoltaic solar capacity of 128 MW and a battery energy storage system of 55 MW/220 MWh.
We have also recently begun construction on Glenellen and Bundaberg, two new photovoltaic projects with capacities of 260 MW and 100 MW, respectively.
“The transaction reflects the strong position of the Naturgy Group in Australia, through its subsidiary GPG, as one of the most successful independent power producers in recent years and a solid commitment to consolidating the platform and its future growth”,said Francisco Bustío, CEO of Global Power Generation.
