Antinuclear

The latest moves come less than a week after the country’s largest emitter of greenhouse gases announced it would quit natural gas production and caps what chief executive Andy Vesey describes as a “very significant strategic pivot” during his first 12 months in the role.

The new unlisted fund will hold AGL’s recently completed solar power projects in western NSW and will be partly owned by AGL, which will contribute $200 million in equity, alongside partners which are likely to be local infrastructure funds.

AGL’s exit from gas production incurred a $640 million after-tax write-down, as flagged last week, which drove the company into the red in the first half……..

Mr Vesey said the strong performance of AGL’s core business “highlights that we are well positioned to capitalise on the evolution occurring in the energy sector”, leading to the launch of the Powering Australian Renewables Fund, which he had hinted at late last year.

The fund will aim to develop at least 1000 megawatts of large-scale renewables projects, about 20 per cent of capacity needed to meet the 2020 Renewable Energy Target, at a cost of $2 billion to $3 billion.

Feedback from “soft soundings” among potential co-investors has been positive, with the line-up of partners likely to be finalised towards the end of June, Mr Vesey said. Australia’s large banks are likely to contribute senior debt, while mezzanine financing could also be involved, said chief financial officer Brett Redman.

Green welcomeGreen groups welcomed news of the fund, with Clean Energy Council head Kane Thornton describing it as the sort of move that is “crucial to unlocking the many thousands of megawatts of renewable energy projects that are ready and waiting to be built around Australia.” http://www.smh.com.au/business/energy/agl-energy-going-greener-with-launch-of-3b-renewable-energy-fund-20160209-gmq2in.html#ixzz3zu38xisy