Origin Energy Limited has struck a deal with Virya Energy to purchase the Yanco Delta Wind Farm, which is a wind and energy storage facility situated in New South Wales. Yanco Delta is positioned within the South West Renewable Energy Zone designated by the New South Wales Government. It comprises a 1.5 GW wind farm and a 800 MWh battery. The project is situated next to key transmission infrastructure.
The wind farm project is situated on a 33,000-hectare area, approximately 10 km northwest of Jerilderie in the Riverina region. Reportedly, the project received New South Wales Government development approval in December 2023 and EPBC approval in February 2024. Completion of the acquisition of Yanco Delta is contingent upon meeting standard transaction conditions. Origin intends to finance the purchase price and pre-construction development expenses through its corporate debt facilities.
The deal includes an upfront payment of $125 million to Virya Energy and an additional variable payment of up to $175 million conditional on the project achieving certain development milestones. Origin will explore various cost-effective methods to fund the project’s construction, such as forming partnerships with capital providers. Moreover, Origin plans to secure agreements for the sale of the majority, if not all, of the energy generated by the wind farm to meet the energy demands of its customers.
REGlobal’s Views: Origin Energy is focusing on expanding its renewable energy and energy storage portfolio through a combination of organic and inorganic routes. The company recently acquired Australian renewable energy provider Walcha Energy in New South Wales. It also recently announced a partnership with BlueFloat Energy to develop the Eastern Rise Offshore Wind Project in the declared Hunter offshore wind zone. Australia, with its rich wind and solar potential, is ideally placed to become a major destination for development of renewables, energy storage and green hydrogen, attracting not only local developers but also investors from across the world.
