Origin Energy, one of the largest energy companies in Australia, is making a bold move in the renewable energy sector with its acquisition of the Yanco Delta wind farm. This project, estimated to cost $4 billion, aims to reduce up to 4.5 million tonnes of emissions annually and will significantly contribute to Origin Energy’s portfolio of renewable and storage projects.
Located in the South West Renewable Energy Zone (REZ) designated by the New South Wales (NSW) Government, the Yanco Delta wind farm is strategically positioned near key transmission infrastructure. With plans for 208 wind turbines and an 800 Megawatt Hours (MWh) battery, this project is set to power over 750,000 households. The wind farm development will take place on a vast 33,000-hectare site, 10 kilometers northwest of Jerilderie in the Riverina district. The project received approval from the NSW Government in December 2023 and under the Environment Protection and Biodiversity Conservation (EPBC) Act in February 2024.
Origin Energy’s CEO, Frank Calabria, describes the Yanco Delta wind farm as a “large-scale, advanced, and highly strategic” project. With all the necessary planning, regulatory approvals, and infrastructure in place, this acquisition marks a significant milestone for Origin Energy’s transition into cleaner energy. It allows the company to quickly bring a substantial amount of renewable energy supply into the market and meet the demands of its consumers. Furthermore, this project will help fill the gap left by the closure of the Liddell power station, Australia’s largest and oldest coal-fired power plant.
As part of the agreement, Origin Energy will make an upfront payment of $125 million to Virya Energy, the current owner of the wind farm. There will also be an additional variable payment of up to $175 million based on the achievement of certain development milestones. Origin Energy plans to utilize its corporate debt facilities to pay for the purchase price and development expenditure before the project’s completion. Additionally, the company is exploring various capital-efficient options, including partnerships with capital providers, to finance the construction of the wind farm.
Calabria emphasizes the importance of working closely with the local community and other stakeholders to ensure the success of the Yanco Delta wind farm. Origin Energy brings its expertise and track record in developing large-scale energy projects to this endeavor.
The Yanco Delta wind farm is not the only renewable energy project in Origin Energy’s portfolio. The company has pending construction plans for a 300-MW battery at the Mortlake Power Station in southwest Victoria. It also acquired Walcha Energy, along with the proposed Salisbury Solar Farm and Ruby Hills Wind Farm projects, with a planned capacity of over 1,300 MW. In addition, Origin Energy purchased the Warrane property to establish the 500-MW Northern Tablelands Wind Farm.
While Origin Energy is actively investing in renewable energy, the NSW government has yet to announce whether it will mandate the company to keep the Eraring coal-fired power station open beyond its scheduled closure in 2025. Think tank Climate Energy Finance expresses concerns about extending the operation of the Eraring station, citing potential costs of $120 million to $125 million per year for NSW residents. The think tank argues that this would be an expensive insurance policy for a non-existent reliability gap, especially considering that NSW electricity consumers are already funding Origin Energy with approximately half a billion dollars in coal subsidies over the next two years.
Origin Energy’s acquisition of the Yanco Delta wind farm demonstrates its commitment to expanding its renewable energy and storage capabilities. With this project, Origin Energy is taking a significant step towards a cleaner and more sustainable energy future for Australia. By reducing emissions and providing renewable energy to hundreds of thousands of households, Origin Energy is positioning itself as a leader in the transition away from fossil fuels and towards a greener future.
