August 6 (Renewables Now) - Aquila European Renewables Income Fund plc (LON:AERS) unveiled on Monday plans to acquire the owner of Finland's li Olhava onshore wind farm and its extension totalling 34.55 MW of installed capacity.
The fund has entered into a short-term financing agreement to secure the exclusive right to buy Aalto Wind No 2 Ltd Oy. The amount to be spent will be equal to around 15.5% of the funds raised in the company’s initial public offering (IPO) in May 2019. The acquisition is due to take place later this year.
The li Olhava wind farm and its extension, located in the northeast of Finland, have an expected output of 99.2 GWh per year. The wind farms 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 extension is eligible until September 2025.
Both wind farms also receive one guarantee of origin (GoO) certificate per one produced MWh. Aquila European Renewables expects to enter into a GoO purchase agreement (GPA) for up to five years to further hedge the market price exposure. The fund said it is planning to sign power purchase agreements (PPAs) once market conditions and hedging solutions are feasible.