Ann: Debt Funding Mandate with Societe Generale for Kidston Solar-GNX.AX, page-2

Genex Power Limited (ASX: GNX, Genex or the Company) is pleased to advise that its wholly-owned subsidiary, Genex (Solar) Pty Ltd, has entered into binding agreements with Ergon Energy Corporation Limited (Ergon) in relation to the connection of Genex’s first phase 50MW Solar PV Project (Solar Project) at Kidston in North Queensland into the National Electricity Market (NEM) via Ergon’s distribution network.

The two agreements with Ergon comprise:  A ‘Negotiated Connection Establishment Contract’ (Establishment Contract) which governs the terms and conditions surrounding the substation upgrade works, which will be undertaken concurrently with the construction of the solar farm; and  A ‘Negotiated Ongoing Connection Contract’ (Ongoing Connection Contract) which governs the terms and conditions for the transfer of the first 50MW of electricity from Kidston into Ergon’s network on an ongoing basis for a period of 25 years.

Pursuant to the terms of the Ongoing Connection Contract, once upgrading of the substation on Genex’s Kidston site is complete, Genex will be able to connect to Ergon’s distribution network and export electricity from Kidston directly into the NEM.

The execution of the Contracts is the result of a detailed negotiation process on key commercial factors over several months and follows a full technical assessment of the works required to upgrade the existing substation. Genex is able to leverage its existing infrastructure via the existing radial 132kV line from Townsville to Kidston to transport its electricity into the NEM. There is sufficient capacity on the line to accommodate the generation from the Solar Project without the need for augmentation. The Company is now focused on Project funding arrangements, finalising EPC Contractor arrangements and in securing an advantageous power purchase agreement.