Herbert Smith Freehills Kramer advises AGL Energy on dual wind energy PPAs with Tilt Renewables

Herbert Smith Freehills Kramer is pleased to have advised AGL Energy (AGL) on two long term Power Purchase Agreements (PPAs) with Tilt Renewables (Tilt).  These large scale PPAs support the development of two major wind farms: the Palmer Wind Farm in South Australia and the Waddi Wind Farm in Western Australia.

Under the Palmer PPA, AGL secures 45% of the expected 274 MW output. Under the Waddi PPA, AGL will offtake 100% of the project’s expected 105 MW output. Both projects are expected to commence commercial operations in the second half of 2028.

The Palmer and Waddi PPAs are the first large-scale wind PPAs entered into in several years and the projects are among the first wind developments in Australia to progress toward financial close in 2025. The Waddi PPA is also AGL’s first long term wind PPA in Western Australia.

The HSF Kramer team acting for AGL was led by Peter Davis (Partner & Head of Energy, Australia) and Cassandra Wee (Partner) with support from Skye Kirby (Executive Counsel) and Solicitors Sumin Lee and Madeleine Scott. The team advised AGL on structuring and drafting the PPAs, taking into account complex regulatory considerations and changing legislative frameworks.

The Palmer Wind Farm, located approximately 70 km east of Adelaide, is expected to supply enough renewable energy to power 142,000 South Australian homes and contribute over $7 million in community benefit funding.

The Waddi Wind Farm, located approximately 150 km north of Perth, has recently received Commonwealth environmental approval and is strategically aligned with the Western Australian Government’s Clean Energy Link North transmission expansion initiative. Once operational, it is expected generate enough clean energy to power up to 68,000 homes and deliver $3.9 million in community benefit funding.

These agreements will support AGL’s decarbonisation strategy and expand its renewable energy linked supply in both states.

These PPAs further strengthen HSF Kramer’s position as a leading legal adviser in the Australian renewable energy transition. Other recent examples of market-leading work in this sector include:

• Synergy on the development of the King Rocks Wind Farm in Western Australia, with an installed capacity of 105 MW;
• Tilt Renewables on its $2.25 billion corporate portfolio financing;
• Akaysha Energy on its landmark 15-year virtual tolling agreement with Snowy Hydro for the 311 MW / /1244 MWhElaine Battery Energy Storage System in Victoria;
• The Seller on the sale of Edify Energy to La Caisse.  This includes an 11 GW development portfolio including the 900 MW, 3.6 GWh Majors Creek & Ganymirra and Smoky Creek & Guthrie’s Gap solar / BESS hybrid power stations in Queensland on which HSF Kramer is also advising;
• A Data Centre on its 151 MW offtake from the Golden Plains Wind Farm – East;
• AGL Energy on the acquisition of Tesla’s network of residential solar and Powerall home battery systems, known as South Australia’s Virtual Power Plant;
• HMC Capital on its A$950 million renewable energy portfolio acquisition and financing;
• Equis on the development and financing of the Calala BESS in Tamworth, New South Wales; and
• EnergyAustralia on its development of the 350 MW/1400 MWh Wooreen Battery Energy Storage System in the Latrobe Valley, Victoria.