German energy company innogy is set to acquire two solar plants totalling 460MW in New South Wales, Australia from Overland Sun Farming Company.

The two projects include – the 347MW Limondale project and the 115MW Hillston project. Construction on the projects is scheduled to commence later this year.

The two projects are expected to begin their commercial operations by the end of next year.

Total investment in the projects, including the acquisition rights, is expected to be more than €400m.

innogy’s subsidiary BELECTRIC will be responsible for the construction works and also take over the operation and maintenance (O&M) of the solar plants.

Subject to customary closing conditions, the transfer of ownership rights for the solar projects is expected to be completed in the second quarter of 2018. Once the transaction is completed, innogy will become the sole owner of the power plants.

Furthermore, innogy plans to review all possible options about the ownership and financing structure of the project to maximize value for its shareholders.

innogy CEO Uwe Tigges said: “With the acquisition of two of Overland’s Australian solar development projects, innogy is entering into a strongly growing renewable energy market. This is a perfect fit with our strategy to deliver sustainable bottom line growth in accordance with innogy's financial targets to maximise value for the company and our shareholders.

“Execution of the two photovoltaic power plant projects is in line with innogy’s hurdle rate framework and funding capacity.”

innogy Renewables COO Hans Bünting said: “Taking over the international solar and battery storage specialist BELECTRIC was the first step to gaining a reliable footprint in photovoltaic power plant technology.

“Thanks to BELECTRIC’s existing network, we have been able to make our first significant utility-scale solar investment, not just anywhere, but in Australia – the continent with the highest solar irradiation per square meter. Australia is an excellent starting point for innogy to grow a valuable solar business.”

Image: innogy to invest €400m in two Australian solar farms. Photo: Courtesy of BELECTRIC.