GenusPlus Secures $140 Million Ausgrid Contract, Boosting Renewable Energy Infrastructure in Australia

About GenusPlus Group Limited

GenusPlus Group Ltd (ASX: GNP) is a leading Australian provider of power and communications infrastructure services. With extensive experience across the country, the company specialises in designing, building, and maintaining electrical transmission and distribution networks, substations, and battery systems. GenusPlus enables the integration of new generation technologies into traditional networks, supporting the transition to a carbon-neutral economy. Leveraging world-class knowledge and technology, the company also excels in delivering scalable communication network solutions, including network design, fixed and wireless infrastructure, and real-time network management. GenusPlus is committed to providing efficient, sustainable, and innovative solutions for Australia’s evolving energy and communication needs.

GenusPlus Strengthens Market Position with Ausgrid Contract

GenusPlus Group Ltd continues to solidify its position as a leading Australian provider of power and communications infrastructure with the recent award of a contract by Ausgrid. This contract, valued at approximately $140 million, covers the sub-transmission line works in the Hunter-Central Coast REZ, one of the five priority renewable energy zones being developed by the New South Wales Government.

The Hunter-Central Coast REZ has been identified for its excellent renewable energy resources, which include wind and solar power. It is also strategically positioned with access to existing power stations, rehabilitated mining land, and well-developed transport infrastructure. This makes it an ideal location to generate and distribute renewable energy. GenusPlus will play a crucial role in upgrading the region’s electricity network to facilitate the integration of new renewable generation sources. The works will involve demolishing and replacing over 100 kilometres of sub-transmission lines, reinforcing the capacity of the network to transfer at least one gigawatt of energy.

This contract positions GenusPlus at the heart of Australia’s energy transition, as the country pushes forward with its carbon-neutral goals and expands its renewable energy generation. It also aligns with the company’s strategy to capitalise on high-value infrastructure projects in the renewable energy sector, further expanding its footprint in Australia’s growing energy market.

Financial Growth and Long-Term Revenue Streams

The financial implications of the Hunter-Central Coast REZ contract are substantial for GenusPlus. The contract is valued at $140 million, providing a significant and long-term revenue stream for the company. The project will be carried out in phases, with early services valued at $2 million scheduled to begin in December 2024 and continue until February 2026. The main construction phase is expected to start in February 2026 and run through to April 2028.

This contract not only boosts GenusPlus’ immediate revenue but also provides a stable financial outlook for the coming years. The contract’s long duration and substantial value help reinforce GenusPlus’ position as a financially strong company capable of securing and delivering large-scale projects. This is particularly important as the company seeks to expand its operations in the renewable energy and communications infrastructure sectors.

GenusPlus’ financial strategy includes focusing on high-value, long-term projects that provide revenue visibility over extended periods. The Hunter-Central Coast REZ project is a perfect example of this approach, offering a steady stream of income and ensuring the company remains financially healthy. Moreover, the lack of capital expenditure required for this contract further strengthens its financial position, as the company can focus on operational efficiency rather than substantial upfront investments.

With peak manning resources of 120 workers expected for the duration of the project, the Hunter-Central Coast REZ contract will also contribute to local employment, supporting GenusPlus’ strategy of drawing on its existing workforce while sourcing additional manpower from local communities. This aligns with the company’s commitment to supporting regional economies and fostering strong relationships with local stakeholders.

The Growing Significance of Renewable Energy Zones

The development of REZs across Australia has become a cornerstone of the nation’s efforts to transition to a carbon-neutral economy. These zones are strategically identified areas rich in renewable energy resources, such as solar, wind, and hydro power, and are expected to play a critical role in decarbonising the national grid.

In this context, the Hunter-Central Coast REZ is a particularly important development. The area was chosen for its high renewable energy potential, its proximity to existing infrastructure, and its ability to support large-scale renewable energy generation. By upgrading the existing electricity network, the region will be able to support more renewable generation capacity, ultimately contributing to the reduction of carbon emissions in New South Wales and across the nation.

As part of this upgrade, GenusPlus will carry out essential works such as the demolition of 86 kilometres of outdated sub-transmission lines, the construction of new 132kV and 66kV dual and single circuit lines, and the installation of advanced fibre optic cables. These improvements are designed to ensure that the region’s energy infrastructure is robust enough to handle the growing amount of renewable energy that will be injected into the grid. The significance of this project extends beyond just the construction work, as it contributes to Australia’s broader goal of achieving net-zero emissions by 2050.

By securing such a major contract, GenusPlus is capitalising on the Australian government’s commitment to building out its renewable energy capacity. The company’s involvement in this transformative infrastructure project positions it as a key player in the country’s ongoing energy revolution.