UK-based Octopus Group Buys 181 MW Wind Farm in Australia

Octopus Australia has acquired the 181MW Dulacca Wind Farm in Queensland, Australia, from global renewable energy company RES.

Once constructed, the wind project will consist of 43 wind turbines and generate enough electricity to power approximately 124,000 homes. Octopus Australia is a part of UK-based Octopus Group that manages over 260 renewables assets globally.

In addition to co-existing alongside the agricultural use of the land, the project aims to make an active contribution towards the Queensland Government’s target of 50% renewables by 2030 and provide much needed generation diversity in this part of the electricity network.

The project reflects a clear commitment to quality site selection, representing a balance between securing a fantastic wind resource while minimising impacts on existing agricultural land use, Aboriginal cultural heritage, and significant environmental features and species, claimed RES.

In addition, RES added, a community fund of $1.25m will provide funding opportunities for local projects, educational and environmental initiatives, community groups and organisations within the communities local to the project.

RES’ Construction Management team will support the delivery of the project by managing the EPC and grid connection contracts throughout the AEMO registration process.

This is Octopus’ fourth large scale Australian renewable asset, with projects in NSW, Victoria and now Queensland after first entering the market in 2018. Octopus now has a dedicated renewable energy team in Australia of 25 people and is responsible for managing over $1 billion, across construction and operational assets in the country with ambitions to continue this rapid growth.

Darren Brown, Octopus Australia’s Investment Director and lead on Dulacca said: “It is great for Octopus to continue our long-standing European relationship with two strong counterparties in RES and Vestas, who between them bring deep wind farm construction and grid experience in Australia.”

“Octopus is also looking forward to forging a new long-term relationship with CleanCo as our PPA partner. There is great alignment among the parties with CleanCo, RES and Vestas also sharing our long-term commitment to the community and helping Australia meet our renewable energy targets.”

Matt Rebbeck, RES’ CEO in Australia said: “We are pleased to be continuing our involvement in this outstanding project and we are looking forward to supporting our partners at Octopus in the construction and operation of the wind farm.”

Debt financing was arranged from a banking consortium including CBA, ING, MUFG, SMBC and Westpac.

In addition to Octopus Australia’s acquisition of Dulacca Wind Farm, it has been announced that publicly-owned energy generator CleanCo Queensland has signed a power purchase agreement with the project owners. The offtake agreement will add a further 126MW to the 980MW of renewable energy CleanCo has already committed to bring to market over the next three years.

CleanCo CEO Dr Maia Schweizer said the wind energy generated by the Dulacca Renewable Energy Project would complement CleanCo’s growing portfolio of renewable energy generation.