Rome - Enel, via its joint venture between the Group's subsidiary Enel Green Power and the Dutch Infrastructure Fund, signed an agreement for the purchase of Bungala Solar One. This is the first 137.5 MW1 phase of the 275 MW1 Bungala Solar PV project, currently the largest ready-to-build solar PV project in Australia, from Bungala Solar Holding Pty Ltd., a subsidiary of Australian developer Reach Solar Energy 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. Bungala Solar is currently the largest photovoltaic project in the 'ready to build' phase in Australia. The closing of the purchase of Bungala Solar Two, the second phase of the project, is expected to take place in the third quarter of 2017, according to a communique released by the group. Bungala Solar is located near Port Augusta in souther 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 total investment for the 275 MW1 joint venture amounts to approximately 315 million USD, including project construction. Enel will contribute approximately 157 million USD. The total investment will be funded by 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 a major Australian utility, Origin Energy. The construction of Bungala Solar One, the first phase of the entire project, is due to begin by mid 2017. It will be followed by Bungala Solar Two, whose construction will begin at the end of the current year. The entire 275 MW1 plant will be fully operational by the third quarter of 2018. The Bungala Solar project has been designed to generate approximately 570 GWh per year, equivalent to the consumption needs of approximately 82,000 Australian households, avoiding the emission of about 520,000 tons of CO2.