GRANVILLE HARBOUR WIND FARM

RENEWABLES

ASSET DESCRIPTION

  • Greenfield 111.6MW wind farm under construction
  • Attractive site on the north west coast of Tasmania with development approval, grid connection agreement, long-term land agreements and high-quality wind resource
  • Acquisition by Palisade-managed clients of 100% of the project completed in February 2018
  • Financial close achieved July 2018
  • Commercial Operations Date targeted for 4th quarter 2019

INVESTMENT FUNDAMENTALS

  • Early involvement allowed Palisade to shape key project contracts
  • Long-term investment grade PPA underpins revenues
  • Experienced tier 1 EPC and O&M contractor
  • Tasmanian electricity network is linked to the NEM via Basslink

KEY RISKS AND MITIGATION

  • Wind farm construction risk mitigated by fixed price EPC contract with performance and delay liquidated damages
  • Transmission line construction risk managed through fixed price contract with limited circumstances for variations plus incentive arrangement with contractor to encourage early delivery of works
  • Wind farm operating risk minimised through tier 1 equipment (with warranties), long term operations and maintenance contract with availability guarantees and oversight by Palisade Integrated Management Services (PIMS)
  • Generation risk assessed through detailed yield analysis undertaken by experienced independent technical advisers
  • Pricing risk mitigated through long-term offtake agreement
  • Refinancing risk mitigated through conservative capital structure