China Longyuan bids for Aussie wind farm

Australia’s Boco Rock wind farm drawing other heavy hitters.

A major incentive for foreign investors is the Australian government’s aim of having 20% of the country’s electricity supply come from renewable energy sources like wind power by 2020.

To achieve this goal, Australia has introduced policies that mandate electricity retailers to buy a proportion of their sales from renewable energy sources.

At the end of the 2009-2010 financial year, renewable energy accounted for around 8% of total electricity generation in the country. Wind energy contributed 2% to total power output.

Bidders may acquire between 50% and 100% of Boco Rock depending on whether GE Energy Financial Services exercises its right to 50% of the wind farm's equity. The entire project could have an enterprise value of up to US$311 million.

The first stage of development includes 66 turbines, which can be increased to 122 turbines. In September, EnergyAustralia signed a power purchase agreement that includes acquiring the output and renewable energy certificates generated from Boco Rock's foundation stage. EnergyAustralia is the Australian unit of Hong Kong-listed power generator, CLP Holdings Ltd.