Powering Australian Renewables Fund FAQs
The PARF is designed to unlock investment in large scale renewable energy resources. The fund provides an opportunity for investors to finance a portfolio of renewable assets, to diversify risk and reduce costs.
AGL will provide $200 million in cornerstone equity, and new pricing models for purchasing the power and LGCs produced by the fund. AGL will provide offtake for up to the first seven years.
It is anticipated that beyond this time the fund will contract with a range of energy retailers and energy end users that need to manage their energy and LGC requirements. These contracts could be made either direct or via energy market intermediaries.
In November 2016, AGL announced on behalf of the PARF that it had reached financial close on selling its 102 MW Nyngan and 53 MW Broken Hill solar plants into the Fund. Following this in January 2017, AGL announced it had reached financial close on the sale of the 200 MW Silverton Wind Farm project in western New South Wales.
No, however the fund is expected to invest only in projects utilising proven technologies – be it one or a mix of technologies.
No. We would hope that other developers would bring their projects to the Fund. However, the Fund is expected to wholly own any projects that it undertakes.
AGL or another qualified and experienced operator would continue to operate the plants.
Every potential project will be assessed on its economic viability and state of readiness to be committed to. This will cover a range of factors including energy and LGC price forecasts, permitting and connection.
Interested parties and stakeholders can email PARF@agl.com.au for enquiries relating to the Powering Australian Renewables Fund.
The Fund will have its own board of directors representing the Fund’s investors. The board will make investment decisions and where AGL is in a position of conflict, it will be excluded from that decision.
Potential debt providers can either contact AGL via their existing relationship manager or via email at PARF@agl.com.au.
AGL expects to acquire all energy and LGCs produced by projects undertaken by PARF for up to the first 10 years of operation. Companies interested in purchasing energy and LGC output from the Fund assets should register their interest via PARF@agl.com.au.