TrustPower goes it alone on $A465m Snowtown stage 2

TrustPower is committing to the full cost of the stage two development of the Snowtown South Australian wind farm, despite having no joint venture partner yet secured.

Hannah Lynch
Tue, 03 Jul 2012

BUSINESSDESK: TrustPower is committing to the full cost of the $A465 million stage two development of the Snowtown South Australian wind farm, despite having no joint venture partner yet secured.

Infratil- controlled TrustPower said today it will "proceed to financial close by July 31, 2012, and delay introducing a co-investor into the project until after financial close has been achieved".

The timing allows TrustPower to lock in a turbine price that would be lost if no commitment is made by July 31, and there "has been significant interest shown" by potential investors, the Tauranga-based company said.

Snowtown stage two will be made up of two separately metered wind farms, Snowtown North, which will have 144 megawatts of installed capacity, and Snowtown South, capable of producing 126 MW.

Both will share a single transmission line and will be built beside TrustPower's existing 100MW windfarm.

Electronic and engineering firm Siemens will manage the turbine supply, while Origin Energy, majority shareholder in NZ's Contact Energy, will sell Snowtown's electricity and gain its renewable energy credits.

TrustPower plans to have all contractual arrangements completed by July 31.

"The additional gearing required to complete construction will move forecast group gearing towards the higher end of the group’s target gearing range by 2014," chief executive Vince Hawksworth said.

"It is expected that the group will operate comfortably within bank financial covenants through this period."

Further information about Snowtown stage two will be provided after the financial close, TrustPower said.

Hannah Lynch
Tue, 03 Jul 2012

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TrustPower goes it alone on $A465m Snowtown stage 2