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ERG to buy French wind firm with 750-MW pipeline

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

April 9 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG) has agreed to acquire a couple of operating wind farms and a roughly 750-MW pipeline in France from a Dutch firm owned by Impax New Energy Investors II.

ERG Power Generation SpA has entered into an agreement to acquire three firms, namely Parc Eolien du Melier SAS, Parc Eolien de la Vallee de Torfou SAS and Epuron Energies Renouvelables SAS, from Impax New Energy Holding Cooperatief WA for an enterprise value of EUR 57 million (USD 69.9m). There is also a EUR-5-million earn-out mechanism in favour of the seller.

Parc Eolien du Melier and Parc Eolien de la Vallee de Torfou are the respective owners of wind farms of 8 MW and 18 MW, each backed by 2014 feed-in tariffs (FiTs) for 15 years.

At the same time, Epuron Energies Renouvelables owns the Wave I, Wave II and Wave III portfolios of projects. Wave I includes five schemes that are at an advanced stage of development and with a combined capacity of 101 MW. These projects are to enter into service in the second half of 2021, with access to the 2016 tariff.

Wave II includes five schemes totalling 143 MW at an intermediate stage of development. They are expected to be completed in the second half of 2022. Wave III, on the other hand, includes early-stage projects that exceed a total capacity of 500 MW and are expected to go online after 2022.

ERG’s CEO Luca Bettonte commented that the planned transaction will help the company to achieve an installed capacity of nearly 300 MW in France by the end of 2018.

“Moreover, in keeping with the Business Plan objectives, the pipeline acquired will enable us to expand and step up the organic growth path that commenced with the co-development agreement recently finalised with Vent d'Est, regarding a pipeline of 300 MW," he added.

The acquisitions are seen to be concluded in the second quarter of 2018.

(EUR 1.0 = USD 1.227)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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