Wollemi Capital Invests in Small Solar and Battery Projects
Wollemi Capital, a specialist in climate investment, has successfully completed its acquisition of MPower, an ASX-listed developer renowned for its rapid deployment of small-scale solar and battery initiatives.
Earlier this year, MPower Group agreed to sell its renewables division to Wollemi for $19 million, with Wollemi pledging to invest over $100 million into MPower’s ambitions for expanding its project pipeline.
MPower’s Innovative Approach to Solar Development
MPower has carved out a niche in Australia as an agile developer of primarily 5 megawatt solar farms. This strategy is based on the premise that constructing numerous smaller projects is not only quicker and easier but also better aligned with the evolving demands of a rapidly changing energy grid compared to larger projects that can reach hundreds of megawatts.
In late 2021, MPower announced plans to incorporate battery storage across its pipeline of up to 20 small solar projects, following a successful grid-connected battery trial with Endeavour Energy.
Wollemi’s Vision for the Future
Wollemi has stated that MPower will become part of its expanding portfolio of climate infrastructure assets, with a clear objective to expedite the delivery of reliable, affordable, and decentralised energy solutions throughout Australia.
Matt Kean, former energy minister and treasurer of New South Wales, now serves as a director at Wollemi Capital and chair of the Climate Change Authority. He shares MPower’s conviction that there is a robust market for small solar and battery projects, especially given the delays in grid upgrades.
“We can’t afford to wait on big transmission builds,” Kean remarked. “Distributed renewable assets like those of MPower are quicker to deploy and essential for achieving Australia’s energy targets.”
Leadership and Strategic Growth
Paul Hunyor, co-founder and co-CEO of Wollemi, has been appointed chair of MPower to steer its next growth phase. He expressed confidence in MPower’s operational capabilities and strategic vision.
“MPower is well positioned to scale up capital deployment and emerge as a significant owner-operator of distributed energy,” Hunyor stated on Tuesday. “Whether behind the meter or connected to the grid, distributed energy infrastructure will be crucial in providing cleaner, more resilient electricity for Australian consumers.”
Challenges and Opportunities Ahead
MPower’s chief, Nathan Wise, acknowledged the difficulties the company has faced in securing project funding at the necessary scale to fully capitalise on the opportunities identified.
“Wollemi’s strategic alignment, growth focus, and expertise in energy transition uniquely position it to generate future value by merging its investment acumen and financial resources with the skills, assets, and opportunities that MPower offers,” Wise commented.
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