LONDON, UK: VH Global Sustainable Energy Opportunities plc (GSEO), managed by Victory Hill Capital Partners LLP, has announced the acquisition of two solar PV sites with co-located battery storage systems in New South Wales, Australia, for £16.9 million.
This move is part of the ongoing Australian Energy Transition Programme, which has now seen its commitment increase to £58.5 million.
The programme’s first phase included acquiring two solar PV sites with a combined capacity of 17MW. The second phase saw the completion of co-located battery storage for the South Australian site in July 2023. GSEO has also completed three new solar PV sites in NSW in Q1 2024, with battery installations set to be hybridised by Q4 2024.
The latest announcement introduces two additional 4.95MW solar PV sites with 2-hour battery storage systems, raising the programme’s total capacity to 37MW/60MWh across seven assets. Construction is slated for Q2 2024, aiming for early 2025 completion.
GSEO expects these hybrid sites to enhance renewable energy supply and grid stability, contributing to Australia’s energy transition. The fully operational portfolio will generate revenue through merchant sales, frequency stability services, long-term contracts, and green certificate sales.
Birdwood Energy will manage the new sites, leveraging over 25 years of experience in the renewable sector. GSEO aims for a 10% total NAV return and a progressive annual dividend, with a target of 5.68p per share for 2024, marking a 2.9% increase from the previous year. The company’s operational assets boast over 90% contracted revenues, with a total leverage of 1.9% of NAV.
Richard Lum, Co-CIO of Victory Hill Capital Partners commented: “We continue to make progress with the continued build out of our Australian solar and energy storage hybrid programme. Once operational, these assets will play a meaningful role in providing needed renewable generation into the Australian energy system, as well as helping the system on its transition pathway to net zero.
Furthermore, investors are offered a means to access interesting market pricing margins in a risk adjusted way, given we aim to hedge half of all production. We believe that the Australian market continues to offer excellent opportunities to support this ongoing transition towards net zero.”