Aquila European Renewables Income Fund plc (LON:AERS) on Friday announced plans to acquire the owner of a 34.55-MW wind complex in Finland.
In a bourse filing, the fund said it has entered into an exclusive agreement to buy Aalto Wind No 2 Ltd Oy, which owns the li Olhava wind park and its extension, located north of the city of Oulu, northeastern Finland. The final amount it will spend on the purchase will be equal to around 16% of the funds raised in the company’s initial public offering (IPO) in May 2019.
The assets included in the transaction operate under the Finnish contract-for-difference (CfD) framework. The Olhava wind farm qualifies for the CfD premium until mid to late 2024, while the 9.9-MW extension is eligible until September 2025. The two power plants are also eligible for guarantees of origin (GoO) certificates, with a GoO purchase agreement (GPA) expected to be signed for up to five years to further hedge the market price exposure.
Aquila European Renewables entered into a short-term financing agreement to secure the exclusive right to buy Aalto Wind No 2 in August. The company plans to sign power purchase agreements (PPAs) once market conditions and hedging solutions are feasible and “considered as attractive from a risk-adjusted point of view,” said chairman Ian Nolan.
The two wind parks, being powered be Vestas V112 and V126 machines, have an expected output of 99.2 GWh per year.
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