Frontier Energy (ASX:FHE) said the Australian Energy Market Operator has increased the reserve capacity credits allocated to Stage One of its Waroona Renewable Energy Project in Western Australia to 99 megawatts from about 88 megawatts, according to a Wednesday Australian bourse filing.
The company said the increase lifts the annual reserve capacity payment it receives to about AU$36 million from about AU$32 million, the filing said.
Frontier updated its average annual forecasts for Stage One from first generation to Sept. 30, 2032, and now expects average annual revenue of about AU$76 million, up from about AU$72 million.
The company expects average annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of about AU$66 million, up from about AU$62 million, and average annual free cash flow at about AU$38 million, up from AU$35 million.
Revenue from the reserve capacity credits is in addition to revenue from energy sales, the company said.
Frontier Energy shares rose nearly 3% in recent Wednesday trade.
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