Ecogen owns two gas power stations in Victoria, the Newport Power Station in Melbourne and the Jeeralang Power Station in the Latrobe Valley, which have a combined capacity of 950MW. This represents approximately 9% of Victoria's total generation capacity.
The acquisition of the Jeeralang and Newport power stations helps to secure EnergyAustralia's generation capacity and provides its retail electricity business with an important hedge against movements in the wholesale electricity price
The transaction required both ACCC and FIRB approval, with the ACCC clearing the transaction after targeted market enquiries in December 2017.
EnergyAustralia currently provides Ecogen with all of its fuel and is entitled to substantially all of its output under a Fuel Supply Agreement and Master Hedging Agreement. These agreements are due to expire on 30 April 2019.
Lead partner on the deal
Kylie Lane (Corporate) comments: "We are delighted to have advised EnergyAustralia on the acquisition of the Ecogen assets from IFM Investors. These significant gas-fired generation assets represent 950MW of capacity and are complementary to EnergyAustralia's asset portfolio."
Kylie was assisted by counsel Lynda Tully, lawyers Ryan Kabat and Lizzie Bird (Corporate); partner Jeff Lynn, senior associates Sophie Osborn and Jo Slater (Environment); partner Jane Harvey and senior associate Abigail Cooper (Employment); partner Kellech Smith and counsel Emma Butler (IP/TMT); Jason Cornwall-Jones, senior associate Gaby Stach and lawyer Jake Saccardo (Property); partner Peter Armitage, counsel Justin Jones, lawyer Melissa Barnwell, Jack Heithersay and Roderick Kennedy (Competition); partner Kenneth Nguyen (Global Loans), and partners Geoffrey Mann and Ian Kellock; with senior associate Bronwyn Kirkwood (Tax).
