Phase one of the 50MW Kidston Solar Project is on track
Wednesday, Mar 15, 2017
Following Financial Close of the Phase One 50MW Kidston Solar Project (KSP1 or Project), Genex Power Limited (ASX:GNX) (Genex or Company) is pleased to advise that the construction program is well underway and remains on track.

Key activities include:

  • Construction progress
  • Site clearing commenced
  • Detailed design 30% complete
  • Construction camp operational with accommodation available for 84 personnel
  • Kidston substation civil works 50% complete and on track for completion and handover to Ergon in April 2017
  • Orders placed for major components including solar panel modules, tracking system frames and inverters
  • The Project remains on budget and on track for First Generation in Q4 2017 and Practical Completion in Q1 2018.

Project revenue and EBITDA outlook

The Australian wholesale electricity market continues to be impacted by escalating domestic gas prices and a changing generation mix, including intermittent renewable generation. Many industry participants anticipate more volatility and higher energy prices going forward.

Against this background, Genex recently conducted an extensive "back-test" modelling exercise to determine potential Project revenues and EBITDA.

The "back-test" model was based on actual historical half-hourly wholesale electricity prices in the National Electricity Market (NEM) over the course of the past 3 years and on the assumption that the Project had operated at its design capacity of approximately 145,000MWh over the course of the modelling timeframe.

Based on historical NEM pricing data, and on the assumption that the Project had been in operation over the full 36 month period to 28 February 2017, the following annual Project revenues and Project EBITDA figures would have been achieved:

Results are theoretical and based on anticipated generation and actual historical half-hour pricing data over the modelling period. These results are in no way an indication of future performance of the Project. EBITDA is at the Project level, and therefore before corporate overheads.

The development of low cost, efficient energy storage, using mature technology, remains the key focus for Genex. Genex remains focused on developing its Kidston Renewable Energy Hub, comprising a 250MW Pumped Storage Hydro Project and a co-located 270MW Solar Project (Phase Two). Genex is engaging with a number of key stakeholders in relation to the funding of its Energy Hub.

Commenting, Managing Director of Genex Power Michael Addison said, "The theoretical financial performance of the 50MW Kidston Solar Project (assuming it had been in operation historically) has the potential to provide a solid revenue and earnings platform for Genex, going forward. Genex remains focused on continuing the development of its Kidston Renewable Energy Hub initiative in the soonest possible time".

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