Octopus Investments Australia’s Director, Sam Reynolds, spoke with the Australian Financial Review about the bright side that the slowdown in the industry presents; including more realistic valuations, more measured transactions and appropriately assessed risks. The well-accomplished Octopus Group has invested approximately $5 billion in renewables across 160 sites in Europe, with sight on transitioning to various opportunities across Australia.
In fact, Octopus Groups’ thriving Australian counterpart, has coordinated with Edify to invest over $450 million towards a Darlington Point solar project near Griffith in NSW. Working with numerous Australian Super Funds as investors, the Octopus team recognise the need to carefully balance electricity sales from a solar project to the merchant price in best optimising value. The 333-megawatt Darlington Point project is expected to launch to market at the start of 2020.
Whilst developer preferred PPA’s will still be offered for this project, Octopus has opted to take a new approach with the Darlington Point launch. That being, looking to take projects to financial close prior running a tender for take-off, in turn minimising project risk and ultimately improving the competitive pricing offered.
