Enlight acquires control of a large wind energy project in Sweden with a capacity of 372 megawatts and an expected investment of EUR 130-140 million

Rhea-AI Summary

Enlight Renewable Energy has acquired control of the Björnberget wind power project in Sweden, with a capacity of 372 megawatts. The company will hold a 55%-61% share, partnering with PGEIF. The total investment is projected at €435-445 million, with Enlight's share estimated at €130-140 million. Construction begins immediately, aiming for commercial operation by early 2023. The project is set to generate approximately €30 million in the first year and around €60 million annually, with an EBITDA forecast of €50 million per year during operations.

Positive

• Acquisition of a significant 372 MW wind project enhances portfolio.
• Expected annual electricity sales of €60 million and EBITDA of €50 million.
• Strategic partnership with PGEIF for future renewable energy projects.

Negative

• Total investment of €435-445 million may strain financial resources.
• Share in the project could decrease to 55% if new investors join.

TEL AVIV, Israel, Oct. 12, 2020 /PRNewswire/ -- Enlight Renewable Energy (TASE: ENLT) announced it has completed the transaction to acquire control in a huge wind power generation project in Sweden with a total capacity of 372 megawatts. The project has obtained the main required permits for its construction, which will begin immediately.

The company completed the acquisition of the Björnberget project, one of the largest wind projects in Europe located in central Sweden, with 60 planned wind turbines based on Siemens Gamesa new 5.X technology.

The company's share in the project will be 55%-61%, and the rest will be held by the European infrastructure fund PGEIF - Prime Green Energy Investment Fund, which specializes in investments in wind energy in the Nordic market. PGEIF is part of the "Prime Capital" group, which manages billions of euros worth assets and investments around the world. Beyond the current transaction, Enlight and the fund agreed to operate as strategic development partners to promote additional renewable energy projects in the Nordic region. 

The Björnberget project was developed by RES, one of the largest renewable energy companies in the world. which will also provide the civil construction works and asset management services for the project.

As part of the transaction, Enlight will be allocated a share of about 20% in the PGEIF fund. And will invest up to EUR 50 million in the fund, which will be used for investments in additional RE projects in the Nordics. The company's weighted share in the project may decrease to 55% in case new investors will join the fund.

The total investment in the project is expected to amount to approximately EUR 435-445 million. Enlight's expected share is EUR 130-140 million, assuming debt financing of 45%-50% which is currently being promoted.

The project has obtained the required permits to begin construction and, according to the company's estimation, will reach commercial operation at the beginning of 2023.

The project company is in negotiations with one of the global technology giants to sell about 50%-55% of the facility's electricity production for the first 10 years as part of a power purchase agreement (PPA).

The project's electricity sales are expected to total around € 30 million in the first year, and around € 60 million per year on average for the operating period. The EBITDA is estimated at around € 50 million on average per year for the operating period.

Gilad Yavetz, CEO and Co-founder of Enlight: "Especially during these challenging days for the Israeli economy, we are very proud to complete this important deal. We would like to thank our partners - Prime Green Energy Fund, RES, who developed the project and will perform its construction works, and Siemens Gamesa who will provide state-of-the-art turbines for the project, for showing their utmost commitment and worked with great intensity until the transaction was completed. The new project, which will begin construction immediately, will significantly increase Enlight's portfolio and its revenues. This is Enlight's second large-scale project in the Nordic market, the biggest, most developed and liquid energy market in Europe. This transaction is part of the company's expansion strategy in the Nordic market and will increase Enlight's flexibility and competitive advantages in many aspects"

Enlight Renewable Energy, founded in 2008, trades on the Tel-Aviv-125 Index. With 98% of its shares held by the public, Enlight is a leading company in the development, financing, construction, and operations of renewable energy generation projects. The company has operations in Israel and Europe with a diversified portfolio of income-generating projects, projects during construction and pre-construction that total over 1.8GW and an additional 1.9 GW in initial development stages. Enlight enjoys consistent growth in revenues from long term electricity sales of its yielding assets, and in parallel increasing its diversification to additional markets and clean energy segments. 

For additional information:

Neta Schoener, Scherf Communications, +972-50-7202718, netas@scherfcom.com

 

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SOURCE Enlight Renewable Energy

FAQ

What is the capacity of the Björnberget wind power project?

The Björnberget wind power project has a total capacity of 372 megawatts.

When will the Björnberget project begin commercial operation?

The project is expected to reach commercial operation by early 2023.

What is Enlight's expected investment in the Björnberget project?

Enlight's expected investment in the project is between €130-140 million.

What are the projected electricity sales from the Björnberget project?

Electricity sales are projected to total around €30 million in the first year and about €60 million annually thereafter.

Who are Enlight's partners in the Björnberget project?

Enlight is partnered with PGEIF, a European infrastructure fund, and RES, which developed the project.