SUN Energy enters into an agreement to acquire the Merredin Solar Farm
SUN Energy has signed a binding agreement, subject to conditions, to acquire 100% of the assets of the 132 MWdc / 100 MWac Merredin Solar Farm (“Merredin”) from Risen Energy, a leader in global solar technology.
Merredin is the largest operating solar farm in Western Australia with a total of 354,452 panels spread over 460 hectares and expected annual renewable power generation of 274 GWh. This is enough green energy to power approximately 42,000 homes in Western Australia. Operational since August 2020, Merredin is connected to the Western Power Merredin Terminal Substation at 220 kV. The project has also obtained development approval to deploy up to 20MW / 40MWh of a Battery Energy Storage System (BESS) onsite which will help stabilize the grid system in Western Australia and create additional revenue streams. SUN Energy and Risen Energy will jointly explore development of the BESS at Merredin post transaction completion.
BHP has an offtake agreement for 50% of the power from Merredin which is directed to their Nickel West Kwinana refinery and Kalgoorlie Smelter. This enables BHP to reduce emissions from electricity use at these facilities by 30-50%. The project also has an agreement with Sunshot Energy for the offtake of Large- Scale Generation Certificates (LGCs) generated by the solar farm. Risen Energy will remain as the O&M contractor for Merredin after the acquisition.
SUN Energy is the largest Commercial & Industrial Solar company in Indonesia with a growing regional footprint. SUN Energy’s vision is to “electrify” Indonesia with green energy, ensuring a sustainable environment for future generations. After solidifying its roots in Indonesia, SUN Energy is actively pursuing regional expansion through acquisitions in key renewable energy markets such as Australia, Taiwan, Thailand and Vietnam.
The acquisition of Merredin forms an integral part of SUN Energy’s expansion strategy, with an ambition to become a regional leader in renewable energy solutions for both corporate and residential customers. Merredin provides the group with a strong foothold to grow in the most developed and dynamic renewable energy market in APAC. “As a solar power developer headquartered in Singapore, SUN Energy has been rapidly expanding its renewable energy portfolio in the region. The Australian market is key for us, given the long-term potential for renewable energy and its geographical proximity. The acquisition supports our strategy to become one of the leading renewable energy companies in the region, through a combination of new project development and selective acquisitions,” says Philip Lee, Chief Executive Officer of SUN Energy.
“We are very pleased to team up with SUN Energy for Merredin Solar Farm. This is the second large-scale solar farm that Risen Energy has completed in Australia, and the signing of this agreement is well aligned with our long-term strategy to grow our position as a solar powerhouse and to achieve our new growth targets in Australia. As our pipeline continues to build, we look forward to delivering more renewable energy projects to the Australian market in the coming years,” says Archie Chen, Chief Executive Officer of Risen Energy Australia. Mr. Chen added that the exemplary performance of Merredin Solar Farm is a testament to Risen Energy’s ability to deliver high-performing assets which contribute to Australia’s net-zero emissions goal. SUN Energy was advised by Voltiq (financial) and DLA Piper (legal) on the transaction, while Risen Energy was advised by Holding Redlich (legal).