The project has been funded on a project finance basis, an Australian-first given there is no long term fixed-price contract for the sale of its electricity.

Woolnorth has a capacity for 64.75MW, providing power for over 25,000 homes. Hydro Tasmania completed construction of the site using its own funds and has now secured financing for the next decade of operation, allowing the reinvestment of proceeds into developing other wind farms and hydropower projects.

“NAB’s consultative approach and knowledge of the wind power and energy sectors were the key to the success of this transaction,” said Hydro Tasmania’s group director for finance and investment Anton Rohner.

The trans-Tasman Basslink project, due to be completed in 2006, will allow the Woolnorth project to export energy to Victoria.

“NAB is proud to partner with Hydro Tasmania on this landmark transaction. We have leveraged our extensive knowledge of the merchant power sector, wind power sector and our structuring capabilities to successfully complete this deal,” said NAB Project Finance division manager Mark Siebert.