According to an analyst, Meridian Energy can be made attractive for investors, with the help of a billion-dollar wind farm joint-venture in Australia. But for that, Government’s approval for floating the company in its second term will be needed.

State-owned Meridian, in partnership with Australian energy giant, AGL Energy, will build a 420-megawatt 140-turbine wind farm in southwest Victoria. It will be financed through a blend of debts with equity and it will be run as a
50/50 joint venture with ASX-listed AGL.

The existing balance sheet capacity, will the basis on which, AGL would fund its share.

The construction is expected to be completed by 2013, as the project has been given regulatory approval. Australia's Renewable Energy Target legislation will benefit the wind farm. The law was passed on June 24, under which, power retailers must sell a part of renewable energy.

He said, “Wind generation currently has a substantial cost advantage over other grid scale renewable technologies that can be practically deployed in Australia”.

Meridian purchased the Mt. Millar wind farm in South Australia for A$191 million, in the month of May. Molly Melhuish, who is an independent energy Analyst shared that the joint venture will make the Company more eye-catching for private investors.

Claire Shaw, a Meridian spokeswoman elaborated that the joint undertaking was not in any way related to privatization.