en.Wedoany.com Reported - Renewable energy developer Frontier Energy has announced that it has secured binding subscription commitments from investors to raise AUD 110 million (before deducting various issuance expenses) through a placement. The funds will be specifically used to support the first phase of its Waroona Renewable Energy Project in Western Australia.
The project is located approximately 120 kilometers south of Perth, the capital of Western Australia, covering an area of 820 hectares. Phase one plans to build a 132MW solar power plant with an 81.5MW/565MWh energy storage system. Including contingencies, the total investment for phase one amounts to AUD 327 million.
According to Frontier Energy, the core reason for the increase in installed capacity for this project is the switch to higher-power photovoltaic modules: the module power has been upgraded from the original 610W to 660W, expanding the solar plant's capacity from the initially planned 120MW to 132MW. Simultaneously, the specifications of the energy storage system have been upgraded from 80MW/360MWh to 81.5MW/565MWh. This serves to meet local reserve capacity obligations on one hand, and on the other, enhances the plant's dispatch flexibility, helping to maximize electricity sales revenue during peak demand periods.
The Perth-based renewable energy developer stated that this hardware and software capacity expansion will effectively increase the project's power generation and electricity sales revenue, optimizing the overall profitability of phase one. The project is being developed in stages, with a long-term plan for a total solar capacity of approximately 1GW and supporting energy storage capacity of up to 660MW, aiming to create a large-scale renewable energy hub in southwestern Western Australia.
Frontier Energy's Executive Chairman, Jamie Cullen, stated that the completion of this equity financing is a key milestone for the project. It will advance the project's senior debt financing process to the formal credit approval stage, helping the project successfully achieve financial close. Upon completing the entire financing process, the company will immediately commence construction of phase one while steadily progressing with preparatory work for phase two. He added that the strong subscription interest from numerous new investors in this financing round validates the strong fundamentals of the Waroona Phase One project and recognizes its long-term potential to develop into a major regional renewable energy park.
Alongside the steady progress of phase one financing, all core engineering, procurement, and construction contracts for the project are in the final signing process, covering key agreements for civil works, core energy storage equipment, and photovoltaic module supply.
According to the company's plan, construction of phase one will commence within this year, with grid connection and commercial operation expected by the end of 2027. Prior to this financing, phase one of the project had already successfully won a tender under Western Australia's inaugural Capacity Investment Scheme and was included in the Australian Energy Market Operator's reserve capacity mechanism, receiving corresponding capacity credit certificates, further securing the project's long-term stable revenue.
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