Neoen Signs PPA With Flow Power For Wind Farm In Australia

World’s major renewable energy player Neoen has announced that it has signed a power purchase agreement (PPA) with electricity retailer Flow Power for 40 MW of energy from its Goyder South Stage 1 wind farm in South Australia.

Neoen held that Goyder South Stage 1 is the first stage of Neoen’s flagship project known as Goyder Renewables Zone having a development approval for a total of 1200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity, making it South Australia’s largest renewable project.

Construction of Stage 1, comprising 75 wind turbines with a total capacity of 412 MW, is currently underway with operations expected to commence in 2024.

Neoen mentioned that under the 10-year agreement, Flow Power will purchase close to 10% of the generation capacity of the wind farm to supply commercial and industrial electricity users affordable local clean energy.

This is the second off-take agreement secured for Goyder South Stage 1, complementing the 14-year contract for 100 MW with the Australian Capital Territory (ACT) Government which was announced in September 2020.

Louis de Sambucy, Managing Director, Neoen Australia, said, “We are delighted to sign our first PPA with Flow Power, who deliver competitively priced renewable energy and emissions reductions to a wide range of Australian businesses. Goyder South is not only an extremely competitive project: it also unlocks exceptional regional economic and local community outcomes.”

Matthew van der Linden, Flow Power CEO, stated, “This PPA represents a significant contribution to Flow Power’s renewable energy portfolio and will enable us to continue providing Australian energy users access to leading clean energy projects.”

Xavier Barbaro, Chairman and CEO, Neoen, added, “The signing of this power purchase agreement for Goyder South demonstrates our ability to secure multiple offtake agreements within one large-scale asset. It underlines once again the competitiveness of our energy, in South Australia and in Australia as a whole.”

Neoen H1 2022 Results: Robust EBITDA, Greater Target For 2022

Neoen has also announced the financial results of the first half of 2022 as its revenue rose 36% to € 224 million. The company’s secured portfolio capacity stood at over 6.3 GW at the end of June and the total portfolio stands 17.3 GW which is 3.4 GW more compared to end of December 2021. Neoen said that it held €559 million in Group cash on June 30, 2022.

Neoen has also raised its 2022 adjusted EBITDA target to between €380 million and €400 million, with an adjusted EBITDA margin anticipated at between 80% and 90%

Also, the RE player is reiterating its adjusted EBITDA growth targets out to 2025 and its target of having over 10 GW in capacity in operation or under construction by 2025 end.