Aquila buys Finnish wind farm – Aquila European Renewables Income Fund has announced the planned acquisition of its fourth investment since its IPO in May 2019.
The company has secured the exclusive right to acquire Aalto Wind No 2 Ltd Oy, the holding entity for a Finnish wind farm, for later this year by entering into a short-term financing agreement. The final consideration will amount to approximately 15.5% of the proceeds from the IPO.
Aalto Wind No 2 Ltd Oy is the holding company for the li Olhava wind farm and its extension, located about 50km north of the city of Oulu. The farms have an installed capacity of 34.55 MW and an expected production of 99.2 GWh a year, based on historical production values. The park comprises eight Vestas V112 wind turbines and three Vestas V126 turbines with capacities between 3.1 and 3.3 MW.
The wind parks qualify for the Finnish feed-in tariff support scheme (structured as a contract-for-difference or CfD). The original project is eligible for the CfD premium for approximately five more years, until mid to late 2024. The 9.9 MW extension. is eligible for approximately six more years until September 2025. The parks are also eligible for guarantees of origin (GoO) certificates. Each wind park receives one GoO per produced MWh. It is expected to enter into a GoO purchase agreement (GPA) for up to five years to further hedge the market price exposure.
Aquila intends to conclude power purchase agreements (“PPAs”) as soon as market conditions and hedging solutions are feasible and considered attractive from a risk-adjusted point of view.
Following the acquisition, the company will be 55.1% invested with a portfolio diversified across Portugal (10.8%*), Denmark (15.5%*), Norway (13.3%*) and Finland (15.5%*), with an allocation by generation technology of 44.3% for onshore wind and 10.8% for hydro.
AERI : Aquila buys Finnish wind farm
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