Setting the Stage for a Mega Renewables Auction
Morgan Stanley, the bankers for Global Power Generation Australia (GPG), is launching a formal sale process for the renewables giant valued at over $4 billion. Owners Naturgy and Wren House Infrastructure aim for a complete exit.
GPG Australia’s portfolio, primarily wind farms, boasts operational assets like Berrybank and Crookwell in Victoria and a battery energy storage system in ACT. The under-construction projects include Crookwell 3, Ryan Corner Wind Farm, Hawkesdale Wind Farm, and a hybrid solar and battery system in Cunderdin, WA.
Massive Renewable Capacity
With assets totaling 1.3 gigawatts, GPG Australia is a major player in the renewables sector. Planned developments, like the Darlington wind farm in Victoria and Paling Yards in NSW’s Oberon region, further showcase its commitment to expanding clean energy capacity.
Financial Snapshot
While the business reported $100.7 million in energy sales for the year ending December 31, 2023, losses on power purchase agreements resulted in revenue of $52.2 million. The operating loss stood at $11.3 million, with a total loss exceeding $144 million due to derivatives hedges.
Potential Bidders and Market Dynamics
The sale is expected to attract core-plus infrastructure investors and strategic buyers, mirroring recent trends in the renewables sector. Notably, underbidders from the CWP Renewables deal, including Iberdrola, Tilt Renewables, CDPQ, and Origin Energy, are anticipated to express interest.
Noteworthy Sector Deals
Recent transactions, albeit smaller, include Lightsource bp’s solar farms sale to Beijing Energy International Australia, Spark Renewables’ acquisition by Tenaga Nasional, and Wircon’s Australian solar farms divestment to Petronas’s Gentari.
Morgan Stanley’s move signals a significant shift in the renewable energy landscape, with GPG Australia’s expansive portfolio poised for a high-stakes auction.
Source：afr.com
