1st renewable energy infrastructure in Palau to be built
The financing for a solar and battery energy project, which will provide up to 20 per cent of Palau’s annual energy requirements, has been completed.
Firm: Allens (Australian Infrastructure Financing Facility for the Pacific)
Deal: Allens has advised on the provision of an US$18 million senior debt facility from the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to Solar Pacific Pristine Power for the development of a 15.28-megawatt direct-current solar photovoltaic facility and 10.2-megawatt alternating-current/12.9-megawatt-hour battery energy storage system in Palau.
Value: US$18 million
Area: Projects and infrastructure, finance
Key players: The Allens team was led by banking and finance partner Rob Watt, with assistance from senior associate Jamie Guthrie, associates Darwin Ni and Chathurika Ravindra and graduate James Hodgson.
Deal significance: The project is to be located in Babeldaob, the largest island in the Republic of Palau. The project will operate under a long-term offtake arrangement with the Palau Public Utilities Corporation. On completion, it will deliver up to 23,000 megawatt hours per year into Palau’s energy grid, meeting up to 20 per cent of Palau’s annual energy requirements.
In addition to the senior debt facility, the project will also benefit from additional funding of up to US$4 million from the Commonwealth of Australia through the AIFFP.
“We are pleased to have assisted to achieve financial close on this complex transaction which has required engagement across multiple jurisdictions including in Australia and the Pacific. When complete, the project will deliver up to 20 per cent of Palau’s annual energy requirements,” said lead Rob Watt.
This project will deliver Palau’s first renewable energy infrastructure and will increase the country’s self-sufficiency in power generation by reducing its dependence on imported fossil fuels.