May 18 (Renewables Now) - Polish energy company Polenergia SA (WSE:PEP) is preparing 185 MW of onshore wind projects for auction, it said earlier this week on announcing results for the first quarter.
Wind projects in Debsk, Szymankowo, Kostomloty and Pieklo are at the final stage of development with construction permits in place. The company is also preparing for auction 40 MW of solar projects, for which it has acquired land rights, and a 31-MW biomass project with a permit and connection agreement. Polenergia noted that it might be possible to attract an investor for the latter project before or after winning the auction.
The company’s operational wind farms produced almost 169 GW in the first quarter of 2018, down by 4% year-on-year because of weaker winds. Still, earnings before interest, tax, depreciation and amortisation (EBITDA) in the wind segment grew by PLN 2.7 million (USD 741,000/EUR 636,000) to PLN 23.3 million. The improvement came thanks to higher prices for the sale of green certificates and lower operating costs, and in part offset EBITDA declines in other businesses of the company.
The average value of green certificates in the reporting period jumped to PLN 63 per MWh form PLN 35 per MWh in the first quarter of 2017. However, it remained significantly below the level of PLN 114.5 per MWh of the first quarter of 2016.
In March it was announced that Norwegian oil and gas group Equinor (OSE:EQNR), former Statoil, had agreed to buy from Polenergia 50% in the early-stage offshore wind projects Baltyk Srodkowy II and III, with a combined planned capacity of 1.2 GW. This week the Polish group said two conditions precedent have already been satisfied -- an increase of the share capital has been registered and the Office of Competition and Consumer Protection has given the go-ahead to the transaction. Thus the final investment agreement with Equinor could be signed as early as on May 22, Polenergia said.
(PLN 10 = USD 2.75/EUR 2.36)