Global investment manager Foresight Group has secured AU$430 million in debt financing to reach financial close on Stage 1 of the Kondinin Wind Farm, clearing the way for construction to begin in Western Australia’s Wheatbelt region.
The 130-megawatt (MW) first stage of the project follows Foresight taking 100 per cent ownership of the overall 370MW Kondinin Energy Project. The asset manager bought out Shell Energy’s 50 per cent stake through its Australian Renewables Income Fund (ARIF).
Debt financing for the development was backed by a consortium of major lenders, including ANZ, Commonwealth Bank of Australia, Deutsche Bank, HSBC, and Westpac.
Stage 1 is underpinned by major government revenue contracts. State-owned power utility Synergy has secured a seven-year power purchase agreement for 100 per cent of the generated electricity.
Additionally, the project secured a 15-year revenue agreement under Tender 5 of the federal government’s Capacity Investment Scheme.
The Western Australian government has also designated Kondinin as a Priority Project under the State Development Act. The declaration provides streamlined regulatory support through the Office of the Coordinator General to assist timely delivery.
“Reaching financial close takes Kondinin from development into delivery and reflects a significant amount of work across the project,” said Daniel Beaver, Portfolio Manager at Foresight’s ARIF.
“With financing secured, long-term revenue support through the Synergy PPA and Capacity Investment Scheme, and the backing of the Western Australian government through Kondinin’s Priority Project designation, Stage 1 is now ready to move into construction.”
Foresight will partner with turbine manufacturer Vestas to supply and install 21 V162-6.2 MW wind turbines for the first stage.
Construction will create approximately 145 direct regional jobs, with electricity supply into the South West Interconnected System scheduled to commence from late 2028.
Once operational, Stage 1 will generate enough renewable power to supply up to 70,000 homes. The project also includes a AU$150,000 annual community benefit fund for local initiatives.