The consortium comprising RES and Macquarie’s Green Investment Group (GIG) announced the completion of the development phase of the second stage of the Murra Warra Wind Farm near Horsham in Western Victoria, and the sale of its interests to global private markets investment manager Partners Group.
Murra Warra II Wind Farm comprises 38 wind turbines with a capacity of 209MW. The sale of Murra Warra II builds on the consortium’s success in the development, financing and construction of the adjacent 61 turbine first stage of Murra Warra Wind Farm, which was also acquired by Partners Group (in 2018).
Murra Warra II will deliver economic benefits to the region, and will form an important part of the state, regional and local economic development. The wind farm is expected to provide over 400 full-time equivalent jobs during the two-year construction period, and ongoing employment opportunities during its operational lifetime.
The direct economic stimulus provided by the first stage of Murra Warra Wind Farm during construction has been $4.4 million to the local and regional economy through spend on accommodation, retail items and services and this local stimulus is anticipated to be replicated by the Murra Warra II construction.
A locally managed community fund for both projects will inject an additional $4m of investment into local projects over the lifetime of the wind farms.
Green Investment Group is part of Macquarie Capital, and today’s Murra Warra II milestone demonstrates the depth and breadth of global expertise in green development within GIG, Macquarie Capital, and RES in the context of the Australian market.
AnchorDebt financing was arranged from a banking consortium including ICBC, ING, Mizuho, MUFG, SMBC and Société Générale. The financing was raised in accordance with the Asia Pacific Loan Market Association’s Green Loan Principles, and subject to an independent Second Party Opinion from Sustainalytics.
It is understood to be the first time a project finance green loan has been used to fund the construction of a wind farm in Australia.
General Electric will provide the 5.5 MW turbines, with a combined output of 209MW. The project will be constructed under contract with General Electric International and its subcontractor, Zenviron.
Pure-play renewables company RES will provide construction and operational asset management services under a long-term agreement. RES and GIG arranged a long-term Power Purchase Agreement for Murra Warra II with utility company, Snowy Hydro through its Renewable Energy Procurement Program.