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
- Palisade managed investors hold a 50.2% interest in the project
- 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
Visit the Granville Harbour Wind Farm website
