Frontier’s Waroona Project selected for Australian Government’s Capacity Investment Scheme
Frontier is pleased to announce the Australian Government has selected its Waroona Renewable Energy Project as one of four WA renewable energy projects to secure support under the Government’s Capacity Investment Scheme. CIS is a revenue underwriting scheme, aimed at accelerating investment in renewable energy and storage projects. CIS provides a long-term revenue safety net for up to 15 years, that decreases financial risk for investors and debt financiers.
Participation in CIS provides a revenue floor that is guaranteed by the Australian Government, which enhances the ability of the Company to secure financing for the Project’s development.
HIGHLIGHTS
• CIS enhances the capacity of the Project to secure funding, as CIS is a revenue underwriting scheme, supported by the Australian Government. CIS gives the Project downside revenue protection, an essential requirement for any financing
o If total revenue falls below an agreed floor price (as determined in Frontier’s CIS tender), the Government will provide top-up payments, therefore guaranteeing a minimum level of revenue
• This is the first tender for the CIS in Western Australia – more than 13.5GWh of applications submitted bids for the process, which is more than five times the final allocation of 2.6GWh
o Waroona was one of only four projects selected across WA
o Stage One development of the Project is for 120MW of solar generation and 80MW 4.75 hr battery or 380Mwh (0.38GWh) of storage
• Projects are assessed against several criteria, including expected time frame for delivery, ability to successfully participate in the Reserve Capacity Mechanism, system benefits and contribution to local and indigenous communities
• Frontier continues to advance multiple funding initiatives for Stage One of the Project, with updates to be provided in due course
