Origin Energy to Sell Wind Farm, Buy Farm's Power Output

MELBOURNE, Australia--Origin Energy Ltd. (ORG.AU) has struck a deal to sell what is slated to be Australia's largest wind farm to Chinese wind-turbine technology company Xinjiang Goldwind Science & Technology Co. (2208.HK) and to buy power from the company over the years ahead.

Origin said Monday it will sell the Stockyard Hill Wind Farm in southeastern Australia to Goldwind for 110 million Australian dollars (US$81.6 million), while also committing to a 530 megawatt long-term power purchase agreement with the project from when it begins operations in 2019 to 2030.

Under the agreement between the companies, Origin would buy all the power generated by the farm, as well as associated renewable energy certificates, for a price of below A$60 a megawatt hour.

The deal comes after Origin early this month agreed to sell the Darling Downs Solar Farm project in eastern Australia to energy-infrastructure firm APA Group Ltd. (APA.AU) and to buy all the power it generates from its expected start-up in 2018 through to 2030.

Origin, an energy producer and retailer, has committed to adding 1,500 megawatts of renewable power to its portfolio by 2020. It is now just 300 MW short of that target.

Stockyard will be located near the town of Ballarat in Victoria state, and will feature 149 wind turbines with a total capacity of up to 530 MW.

The sale remains subject to regulatory approvals.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 07, 2017 19:40 ET (23:40 GMT)