ERG to buy 34-MW wind portfolio in Germany

Italian energy company ERG SpA (BIT:ERG) said on Monday it has agreed to acquire a portfolio of three wind parks in Germany with a combined capacity of 34 MW.

Under the agreement, ERG’s subsidiary ERG Windpark Beteiligungs GmbH will take full ownership of the three companies owning the plants from a unit of German investment group Aquila Capital. ERG estimates the equity value of the acquisition at EUR 39 million (USD 43.2m), while the deal itself will have an enterprise value of EUR 83 million.

The three wind farms, the names of which were not provided, are located in the Mecklenburg-Western Pomerania region of northeastern Germany and have been operational since 2014. Equipped with 11 Vestas V112 turbines, their average annual output in the last four years was 89 GWh, or more than 2,600 equivalent hours per year. The wind parks receive a 20-year incentive tariff, which in 2018 was around EUR 97 per MWh on average.

The acquisition is pending antitrust clearance and is expected to be completed in the third quarter. The Italian group said it will expand its installed onshore wind capacity in Germany to 272 MW.

(EUR 1.0 = USD 1.108)

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