ROSS RIVER SOLAR FARM

RENEWABLES

ASSET DESCRIPTION

  • Greenfield 148MW solar farm in final stages of development
  • Attractive site near Townsville with development approval, grid connection offer, lease option, high solar irradiation and flat topography
  • Acquisition by Palisade-managed clients of 50% equity interest from ESCO Pacific (project developer) completed in December 2016
  • Financial close achieved April 2017
  • Board control from financial close

INVESTMENT FUNDAMENTALS

  • Early involvement allows Palisade to shape key project contracts
  • Revenue largely underpinned by long-term investment grade PPA
  • Experienced large Australian EPC and O&M contractor
  • Priority return structure provides downside protection
  • Platform for future collaboration on developer’s project pipeline

KEY RISKS AND MITIGATION

  • Construction risk mitigated by fixed price EPC contract with performance and delay liquidated damages, and investment grade guarantor
  • Operating risk minimised through tier 1 equipment (with warranties), strong operator and oversight by Palisade Asset Management
  • 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