SYDNEY: Origin Energy Limited has taken a significant step in its renewable energy strategy by entering into an agreement with Virya Energy. This deal involves the acquisition of the Yanco Delta Wind Farm, a prominent wind and energy storage project in New South Wales.
The Yanco Delta project is situated within the South West Renewable Energy Zone (REZ), designated by the New South Wales Government. It features a 1.5 GW wind farm coupled with an 800 MWh battery, making it one of the largest of its kind.
Located on a vast 33,000-hectare site near Jerilderie in the Riverina district, the wind farm development is just 10 kilometers northwest of the town. This strategic location places it adjacent to essential transmission infrastructure.
The project has successfully obtained development approval from the New South Wales Government in December 2023 and EPBC approval in February 2024, marking key milestones in its progression.
Frank Calabria, CEO of Origin, emphasized the strategic importance of the Yanco Delta project. He highlighted its advanced nature and the secured planning and regulatory approvals that pave the way for a cleaner energy portfolio for Origin.
Calabria pointed out the rapid development of Origin’s renewable and storage project portfolio. Yanco Delta, in particular, offers a unique opportunity to quickly introduce a substantial volume of renewable energy to the market, addressing customer needs.
The CEO also noted the advantageous location of Yanco Delta within the South West REZ. The project promises benefits of scale due to its quality wind resource, and Origin is eager to collaborate with the local community and stakeholders to advance the project.
The acquisition’s completion is contingent upon typical conditions for such transactions. Origin plans to fund the purchase price and pre-construction development expenditure through its corporate debt facilities.
The financial terms include an upfront payment of $125 million to Virya Energy. Additionally, there is a variable payment of up to $175 million, which is conditional on the project reaching certain development milestones.
In line with Origin’s strategy, the company is exploring various capital-efficient financing options for the project’s construction. These options may involve partnerships with capital providers.
Origin also intends to contract most, if not all, of the wind farm’s offtake. This move is aimed at supporting the energy requirements of its customers.
The company’s portfolio extends to other renewable and storage projects, such as Walcha Energy’s proposed Ruby Hills Wind Farm and Salisbury Solar Farm in the New England REZ.
These projects have a combined planned capacity exceeding 1,300 MW. Additionally, Origin has acquired ‘Warrane,’ now known as the Northern Tablelands Wind Farm, with a potential of 500 MW.
Progress is ongoing for large-scale batteries at the Eraring and Mortlake power stations, further expanding Origin’s commitment to renewable energy.
With these developments, Origin is positioning itself as a leader in the transition to cleaner energy sources, contributing to a sustainable future.