Flat Rocks Stage 1 Wind Farm
Client: Potentia Energy
Location: Western Australia, Australia
Date: 2023 - 24
Providing Independent Technical Advisor services to fulfil lenders’ requirements for financing during construction of a wind farm
Background
The Flat Rocks Stage 1 Wind Farm, situated in Western Australia near the township of Konjonup, is a 75 MW project comprising 18 x 4.2 MW Vestas wind turbines. Having provided lender’s due diligence to assist in securing finance for the wind farm, Entura was approved by the project’s lenders as the independent technical advisor (ITA) for the construction phase of the project.
Services
As the Independent Technical Advisor, Entura was tasked with the responsibility of ensuring that the technical components of the project were independently verified and that progress was accurately reported.
Drawing on our significant experience of all aspects of wind power projects, we undertook a range of monthly and quarterly tasks to verify project milestones and compliance with financial and contractual requirements to provide the project’s lenders with confidence in the use of the loan funds.
Monthly tasks included ‘Cost to Complete’ analysis and issuing milestone certificates. This required verifying via documentation reviews and site visits that key components had been delivered and installed and that project milestones had been completed.
Our team prepared detailed quarterly reports regarding schedule, budget, power purchase agreement (PPA) obligations, and any contingencies that could impact project costs. We also reported on aspects of risk management such as health and safety practices, community consultation, and adherence to Equator Principles.
We provided ad-hoc advice to give lenders assurance that any changes to the project were necessary, appropriate and within the scope of the project budget.
On completion of the project, we verified that all contractual and permit requirements had been satisfied, and then issued the completion certificates needed to execute the loan.
Entura’s expert team, robust systems and efficient processes ensured that we could respond immediately to requests and provide fast turnarounds of documentation with a high level of accuracy. This meant that contractors could be paid on time, which in turn kept the project proceeding on schedule.
Outcome
Our impartial evaluation, rapid and clear reporting, and reliable technical advice provided reassurance to the project’s lenders of the Flat Rocks Stage 1 Wind Farm’s progress and successful completion. The project progressed without significant issues, on time and within budget.
Flat Rocks Stage 1 Wind Farm achieved full operation in the first half of 2024, supplying renewable energy to BHP under a 12-year Power Purchase Agreement (PPA).
Image courtesy of Potentia Energy
