ERG expands in France with 38-MW wind buy

Wind farm in Italy. Source: ERG SpA (www.erg.eu).

February 25 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG) said on Monday it has acquired the owners of 38 MW of wind parks in France for an enterprise value of EUR 39.6 million (USD 42.9m).

Though subsidiary ERG Eolienne France, the Italian firm has bought a 100% interest in five French-based firms from Luxembourg’s Long Wind France SA. The particular companies are the owners of three wind parks in the Hauts de France, Centre-Vallee de la Loire and Nouvelle Aquitaine regions.

The acquired power plants were brought online between 2010 and 2012 and together generate around 70 GWh of electricity per year. Each of them is supported by a 15-year overall incentive tariff, valid from the respective commissioning date, which in 2019 was EUR 91/MWh on average. The portfolio’s average annual earnings before interest tax, depreciation and amortisation (EBITDA) is forecast at about EUR 4.5 million. 

“This transaction allows us to consolidate our position in the onshore wind power market, taking our installed capacity to around 400 MW," said Luca Bettonte, ERG's CEO.

Norton Rose was EDF’s legal counsel in the deal, which PwC and DNV-GL advised it on accounting and tax and technical matters, respectively.

(EUR 1.0 = USD 1.083)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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