The group, through its international subsidiary Global Power Generation, has signed a financing line that will allow it to strengthen its liquidity and, at the same time, provide a financing platform to support GPG’s growth in Australia. GPG closes 2024 with a portfolio of 1 GW of projects in operation, to which 360 MW under construction and 510 MW ready to begin construction should be added.
Following the commercial start-up of the Hawkesdale wind farm, located in the state of Victoria, this week the international renewable subsidiary of the Naturgy Group is inaugurating the Ryan Corner and Crookwell 3 wind farms, and will soon inaugurate the Cunderdin hybrid solar photovoltaic plant with storage.
Naturgy, through its international generation subsidiary Global Power Generation (GPG), has received strong support for the management and development of its project portfolio in Australia with the signing of a financing line for an amount of 2.3 billion Australian dollars, equivalent to more than 1.4 billion euros. The financing operation has been formalized with 11 international banks and is based on the portfolio of projects that GPG has in operation and development in this country.
With this operation, Naturgy strengthens its liquidity and provides GPG’s business in Australia with the necessary resources to ensure its development.
The financing line is structured on a portfolio of eight assets in operation – six wind farms, a storage project with batteries and another hybrid solar with storage project -, two photovoltaic plants under construction and a hybrid solar with batteries project under development. In total, GPG closes 2024 with 1 GW of projects in operation, to which must be added 360 MW under construction and 510 MW ready to begin construction.
Steven Fernández, General Manager of Financial Markets and Corporate Development at Naturgy, said that “this agreement is a clear reflection of the confidence that financial institutions have in our ability to lead the energy transition, supported by the tireless work of a team committed to a more sustainable future.”
This financing is in addition to the recent €1 billion loan agreed between Naturgy and the European Investment Bank (EIB) to support investments in new solar photovoltaic and onshore wind power plants, as well as in the repowering and hybridisation of existing ones in Spain. The loan, the first tranche of which has been signed for a value of €400 million, will also be allocated to a lesser extent to investments in batteries for the storage of renewable energy.
Financial strength
Thanks to the company’s agility in managing to take advantage of available financing opportunities, the group’s total liquidity maintains a large cushion, which at the end of the first half of the year was 9.7 billion euros in cash and cash equivalents, and available credit lines. This solvency, together with the cash generated by the business’s own activity, allows it to comfortably meet the financial obligations of the coming years.
This strength was recognised by the market last September with the issue of two bonds for 500 million euros each, with maturities of 6 and 10 years respectively, and a great excess demand by the investment community. The high interest generated by the group, with a total of 233 investors participating in the issue, allowed Naturgy to obtain very competitive financing terms and improve its capital structure by extending the average life of the debt.
Australia, a key country in the company’s development strategy
Last year, Naturgy celebrated the 15th anniversary of its presence in Australia, a priority country for the group due to its enormous potential in terms of energy transition. In total, the project portfolio in this country represents a combined installed capacity of more than 1.8 GW: 758 MW wind, 818 MW solar and 245 MW/600 MWh of storage.
Currently, GPG has four wind farms in the country: Berrybank 1, Berrybank 2, Crookwell 2 and Hawkesdale. The latter, located in the state of Victoria, has been in commercial operation since the end of August and has an agreement with Amazon for the supply of the energy produced. In addition to these wind projects, Naturgy put into operation in 2023 the ACT Battery project, its first storage facility worldwide.
In addition, the group has a broad portfolio of projects under development and construction in the country that will significantly increase this figure in the future. This week, the company is inaugurating the Crookwell 3 and Ryan Corner wind farms, which will be its largest wind farm in the country with a capacity of 218 MW, and will soon inaugurate the Cunderdin hybrid solar and battery plant. The latter is a clear example of this commitment to the country as it is the first hybrid solar project to be developed in the country, with an investment of 172 million euros. The plant will have an installed solar photovoltaic capacity of 128 MW and a battery energy storage system of 55 MW/220 MWh.
In addition, GPG recently began construction of Glenellen and Bundaberg, two new photovoltaic projects with a capacity of 260 MW and 100 MW respectively.
“The operation reflects the strong position of the Naturgy Group in Australia, through its subsidiary GPG, as one of the most successful independent electricity producers in recent years and a firm commitment to the consolidation of the platform and its growth in the future.”
