Eolus agrees to sell 79-MW Swedish wind farm to Munich Re

Swedish wind project developer Eolus Vind AB (STO:EOLU-B) has inked a deal to sell its 79-MW Jenasen wind project in the municipality of Sundsvall, it announced on Wednesday.

The company is selling the wind project to MEAG, the asset manager of Munich Re (FRA:MUV2) and Ergo, for about EUR 106 million (USD 119m). The transfer of the asset to MEAG will take place once the plant is completed in the summer of 2018, according to the announcement.

Eolus Vind signed a power purchase agreement (PPA) with Google Inc (NASDAQ:GOOG) for that project in late 2015. Over the 10-year duration of the off-take contract, Google will buy all of the plant’s output plus the associated Guarantees of Origin (GoOs). The new deal with MEAG stipulates that Eolus will acquire the right to 96% of all electricity certificates produced over 15 years in exchange for a payment of EUR 9 million.

The wind park, which is being built in Linden, will consist of 23 units of Vestas’ V126 systems wind turbines. It is the sixth Eolus-developed wind farm that MEAG invests in for a total of 147 MW.

“The investment makes an attractive and lasting contribution to the risk diversification of our portfolio and helps to cover Munich Re’s long-term liabilities deriving from its insurance business,” said Holger Kerzel, MEAG’s managing director.

(EUR 1.0 = USD 1.122)

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