Business · Energy & Commodities · 2 hrs ago
Frontier Energy clears revenue-support hurdle for Waroona project funding
Frontier Energy signed a federal revenue-support agreement for its Waroona renewable energy project in Western Australia.
The agreement provides a revenue floor until 2042, with government top-up payments if project revenue falls below an agreed level.
The deal clears a key condition for a $280 million debt facility that the company signed with international lenders.
Western Australia’s Reserve Capacity Scheme also provides minimum revenue support for the project.
Stage One will pair 132 megawatts of solar power with an 81.5-megawatt battery to supply electricity during evening peak demand.
The project is expected to be fully funded through its first electricity generation in 2028, using the debt facility and a $110 million share placement completed in July.
Frontier plans to hold a ceremony on November 13 to mark the start of major construction.
Frontier Energy has signed a federal revenue support agreement, clearing a key hurdle to financial close on a $280 million debt facility for Stage One of its Waroona project.
The Capacity Investment Scheme Agreement provides a minimum level of revenue support until 2042.
Western Australia’s Reserve Capacity Scheme will provide additional minimum revenue support.
The project’s Stage One pairs 132MW of solar generation with an 81.5MW battery.
The company expects the debt facility and a $110 million placement to fund Stage One through first energy generation in 2028.
- Who
- Frontier Energy and the Australian Government signed the Capacity Investment Scheme Agreement.
- What
- The agreement provides revenue support for Stage One of Frontier Energy’s Waroona project and clears a key hurdle to financial close on a $280 million debt facility.
- When
- Reported on November 6, 2026. The agreement’s signing date is not stated.
- Where
- The Waroona project is in Western Australia, about 120km south of Perth.
- Why
- The agreement provides a revenue floor, with the Government making a top-up payment if project revenue falls below an agreed price. It was a key factor in securing the debt facility.
This story does not have two clearly opposing sides.
Frontier Energy announced a credit-approved underwriting letter and term sheet for the debt facility.
The company completed a $110 million placement.
Frontier Energy announced it had executed a $280 million syndicated debt facility agreement.
Stockhead reported that the company had signed the federal revenue support agreement.
Frontier Energy planned to hold a sod-turning ceremony to mark the start of major construction.
First energy generation from Stage One is expected.
- Debt facility
- $280 million
- Federal revenue support
- Capacity Investment Scheme Agreement provides minimum support until 2042
- Additional revenue support
- Western Australia’s Reserve Capacity Scheme
- Solar capacity
- 132MW
- Battery capacity
- 81.5MW
- Project location
- About 120km south of Perth, Western Australia
What people are saying
This is yet another major milestone for Frontier in 2026
The execution of the CISA means there are no major CPs remaining on the $280 million debt facility, meaning financial close will take place shortly.