Application for Generation License
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Application for Generation License Lal Lal Wind Farms Nom Co Pty Limited ABN: 37 625 768 774 Website: www.lallalwindfarms.com.au Tel: 1800 187 183 2 TABLE OF CONTENTS 1. Information on the Applicant and Nature of the application ____________ 4 1.1 Introduction __________________________________________________________ 4 1.2 Applicant Details ______________________________________________________ 5 1.3 Corporate Structure ____________________________________________________ 5 1.4 Organisational Structure ________________________________________________ 6 1.5 Project Expertise ______________________________________________________ 8 1.6 Experience of Key Personnel ____________________________________________ 11 1.7 Details of key contracts and agreements ___________________________________ 12 1.8 Planning and Environment ______________________________________________ 16 2. Essential services commisson objectives _________________________ 19 2.1 Efficiency in the industry and incentives for long term investment _____________ 19 2.2 Financial viability of the industry _______________________________________ 19 2.3 The degree of, and scope for, competition within the industry, including countervailing market power and information asymmetries ___________________________________ 20 2.4 The relevant health, safety, environmental and social legislation applying to the industry ________________________________________________________________ 20 2.5 The benefits and costs of regulation for consumers and regulated entities _______ 20 3. Information on financial viability ________________________________ 21 3 3.1 Financial Data _______________________________________________________ 21 3.2 Significant Contracts __________________________________________________ 21 3.3 Business Plan _______________________________________________________ 21 3.4 Annual Report _______________________________________________________ 22 3.5 Certificate of Registration _______________________________________________ 22 3.6 Statements from Parent Company ________________________________________ 22 3.7 Guarantees in place ___________________________________________________ 22 3.8 Australian Financial Services License _____________________________________ 22 3.8 Discussions with Licensed Distributors ____________________________________ 22 3.9 Complaints Register and Procedures _____________________________________ 22 4. information on technical capacity _______________________________ 23 4.1 Organisational chart of key personnel with details of experience ________________ 23 4.2 Contracts with external service providers __________________________________ 23 4.3 Statements from industry bodies _________________________________________ 23 5. Information in support of the general license application _____________ 24 5.1 Directors and Managers experience in and knowledge of the electricity industry ____ 24 5.2 Evidence of the capacity to comply with Generator License conditions ___________ 24 5.3 Related Entities ______________________________________________________ 24 5.4 Interactions or preliminary registration with NEMMCO ________________________ 24 5.5 Confirmation of planning and environmental approval ________________________ 25 5.6 Evidence demonstrating the entity can successfully operate a business within the electricity industry________________________________________________________ 25 5.7 Cross ownership _____________________________________________________ 25 6. List of attachments __________________________________________ 26 4 1. INFORMATION ON THE APPLICANT AND NATURE OF THE APPLICATION 1.1 Introduction This application for a Generation License under the Electricity Industry Act 2000 (Vic) (the Act), is made to the Essential Services Commission by RES Australia Pty Ltd (ABN: 55 106 637 754) (RES Australia) as Asset Manager to and on behalf of Lal Lal Wind Farms Nom Co Pty Limited (ABN: 37 625 768 774). Lal Lal Wind Farms Nom Co Pty Limited (LLWF or Applicant) is applying for the license in its capacity as agent for the Project Partnership (the Partnership, illustrated in Figure 1). The Applicant acts as an agent for the equity partners, with the Applicant being an asset of the Partnership. The Applicant is a fit an proper person to engage in the electricity generation activities that will be covered by the Generation License. LLWF is applying for a license to generate and transmit electricity from a 220MW Wind Farm, being built southeast of Ballarat, in the Moorabool Shire, Victoria. LLWF will be composed of two components, situated at the Elaine and Yendon localities. The two components of the wind farm are located approximately 9km apart and form a combined land holding of approximately 2,100 hectares. The Yendon site is anticipated to have 38 turbines with indicative capacity of 144.4 MW exporting power to the Ballarat Terminal Station via an upgrade of an existing 66 kV line which passes through the site, while the Elaine site is anticipated to have 22 turbines with indicative capacity of 83.6 MW exporting power to Elaine Terminal Station which is located within one kilometer of the site boundary. RES Australia are experienced developers, owners and operators of wind and other renewable energy projects around the world. To this end, RES Australia has been appointed as Construction and Asset Managers by the Applicant in respect of the Lal Lal Wind Farm. Accordingly, pursuant to Section 18 of the Act, LLWF is applying to the Essential Services Commission (ESC): 5 • For a license to generate electricity for supply and sale into the National Electricity Market (NEM) • For that license to commence / be effective from 1 February 2019 • Noting that: o LLWF does not currently hold any generator licenses in the state of Victoria o This is the first generator license sought by LLWF o No non-standard license conditions are sought by LLWF 1.2 Applicant Details The details of the Applicant applying for a Generator License are provided below: Applicant Name Lal Lal Wind Farms Nom Co Pty Limited ABN 37 625 768 774 Registered Business Lal Lal Wind Farms Nom Co Pty Limited Address Level 6, 50 Martin Place Sydney NSW 2000 Business & Postal C/RES Australia Pty Ltd Address Suite 4 Level 1, 760 Pacific Highway Chatswood NSW 2067 Catherine Fetherstonhaugh, Energy Market Compliance Manager Contact Person Mobile: Email: Incorporation Details Lal Lal Wind Farms Nom Co Pty Limited was incorporated on 24 April 2018 1.3 Corporate Structure The Applicant is a subsidiary of a structure of companies and is owned by Partners InfraRed Infrastructure (40%) Northleaf (40%) and Macquarie (20%) as illustrated in the diagram below. 6 The Applicant acts as an agent for the equity partners, with the Applicant being an asset of the Partnership. Figure 1 shows this structure in its entirety. Figure 1: Corporate Structure 1.4 Organisational Structure Figure two details the Lal Lal Wind Farm Project organizational structure, including composition of the board, management and other key personnel. 7 Figure 2: Project Organisational Structure Figure three shows the RES Australia Construction and Asset Management team structure, including technical personnel. All employees shown on this chart are providing professional and/or technical expertise to LLWF. 8 Figure 3: Project Delivery Structure 1.5 Project Expertise Macquarie Corporate Holdings The ultimate holding company in the Macquarie corporate structure is Macquarie Group Limited, a diversified financial group listed on the Australian Stock Exchange. Macquarie is a leading financial adviser on energy sector related transactions globally and in Australia. Macquarie have a strong track record in Australia in both an advisory and principal investment capacity through numerous transactions totaling over 1,000 MW, including the sale of Macarthur wind farm for Meridian Energy, Mumbida and Silverton wind farms developments, the completion of six wind farm 9 transactions for AGL Energy, and the purchase of Waterloo Wind Farm for Palisade Investment Partners and Northleaf Capital. Northleaf Capital Northleaf is an independent global private markets investment firm, with more than US$10 billion in commitments under management on behalf of more than 80 institutional investors, including public, corporate and multi-employer pension plans, university endowments, foundations, financial institutions, family offices and high net worth individuals. Northleaf’s 110-person team, headquartered in Toronto with offices in Melbourne, Montréal, London, New York, Chicago and Menlo Park, is focused exclusively on sourcing, evaluating and managing private market investments globally. The team has more than 130 years of collective experience with infrastructure assets of various types across the OECD regions, including power generation (including renewable generation), transportation, regulated utilities, public-private-partnerships, bulk liquids storage and communications infrastructure in Australia, Canada, the US, the UK and Europe. In total, Northleaf is invested or committed to 13 renewable energy assets encompassing over 1,200MW of gross generating capacity across wind, solar and geothermal in Australia, North America, the United Kingdom and Europe. Northleaf has an existing presence in Australia via its investments in the Waterloo Wind Farm, an operational wind farm located in South Australia, and ANZ Terminals, Australia’s largest independent bulk liquids storage provider. Northleaf recently made its third investment in Australia with the acquisition