Israel's Enlight expands portfolio with 113-MW Swedish wind buy

Enlight Renewable Energy Ltd (TLV:ENLT) has agreed to purchase a 113-MW shovel-ready wind project in Sweden, planning to start initial construction works immediately.

Called Picasso, the project will be located in southern Sweden, comprising 27 Vestas turbines of 4.2 MW each, Enlight said on Wednesday. The new owner expects to achieve financial close in the last quarter of the year, with the total needed investment estimated at between EUR 135 million (USD 150.3m) and EUR 140 million. This amount includes agreements for construction, management and acquisition of rights in the project company. According to Enlight’s calculations, the equity required for the project will be approximately 40%-45% of the total investment.

The wind farm is planned to become operational in the first half of 2021. Around 50% of its output for the first 12 years will be sold under a power purchase agreement (PPA), while the rest will be sold on the electricity market of northern Europe. Enlight is now holding talks for the off-take contract. Sweden-based Svevia will be in charge of the balance of plant construction works.

The plant’s electricity sales are expected to range at EUR 10 million-12 million per year in the first 12 years and at EUR 17 million-24 million for the remaining 18 of the facility’s lifespan.

(EUR 1.0 = USD 1.113)

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