GenusPlus Group Limited (Genus, the Group, ASX: GNP) is a specialist power and communications infrastructure and services provider operating across Australia. The Group designs, builds, and maintains electrical transmission and distribution networks, substations and battery systems. Applying the Group’s expertise in power networks, it also specialises in delivering integrated efficient and scalable communication networks including fixed and wireless infrastructure. GenusPlus listed on the ASX on 14 December 2020 at an issue price of 96 cents per share.
$270 M Clean Energy Link – North Region project
Genus has commenced work on Western Power’s $270 million Clean Energy Link – North Region project. The project will strengthen Western Australia’s largest electricity network to ensure it can connect and transport a greater supply of renewable energy from the Wheatbelt region and the Mid West region. This is an ideal location from which to harness the power of wind and solar energy and to facilitate the State’s decarbonisation objective of net zero by 2050. Strengthening the northern transmission network is critical for this target to be met.
Under the contract terms, Genus will expand the South West Interconnected System’s (SWIS) northern section to allow for more clean energy generation in the Mid West region. This expansion will benefit other renewable energy projects including the $400 million expansion of Warradarge Wind Farm, which is owned by Bright Energy Investments, a joint venture between Synergy, Cbus Super and one of the world’s largest infrastructure managers, CVC DIF.
GenusPlus will also design and construct three terminal substations in the area, as well as build an associated line, with work due to commence in the coming months.
The Western Australian Government has undertaken modelling indicating a 10‐fold increase in renewable energy generation may be needed to meet the State’s future low-emissions electricity demand.
The project will include new 330 kilovolts and 132 kilovolts terminal builds within the existing network footprint to significantly increase transmission capacity and enable new energy sources to come online. The project also includes existing line conversions and reinforcement work to significantly improve the flow of renewable energy to and from the area.
The design and construction of two new terminals at Regans Ford and Eneabba and an associated line, and augmentation of the existing 330 kilovolts Northern and Eneabba terminals are also part of the contract. Peak personnel resources are expected to be 140, to be sourced mostly from the Group’s existing workforce.
To give the scale of this new two-and-a-half year $270 million contract some perspective, Genus’ annual revenue in FY24 was $551 million. The incremental revenue from this new contract represents an annualised increase of approximately 20 percent.
Looking ahead
Genus has been a key delivery partner of Western Power and the Western Australian Government for many years as it moves towards a clean energy future.
The $270 million Clean Energy Link – North Region project appears to be a small component of the Western Australian Government’s $5.7 billion investment in onshore wind,
large-scale battery storage and new transmission infrastructure. This investment is consistent with the Western Australian Government’s plans to retire all State-owned coal-fired power plants by 2030.
This stated objective implies that the specialist power solutions capabilities of Genus to construct power lines and transmission towers to move renewable energy from source, to where it is needed, are likely to be in strong demand for the next 6 years.
