A consortium comprising EDF Energies Nouvelles, MEAG, the asset management arm of Munich Re and ERGO, and GE Energy Financial Services, a unit of GE, is buying 32 operating wind farms in France from Iberdrola.
The portfolio of onshore wind farms, which are spread throughout France and were commissioned in 2006-2012, have a combined capacity of 321.4 megawatts using turbines from a variety of manufacturers. Electricity generated is sold according to long-term contracts under France’s feed-in tariff. The transaction is valued at €350 million, plus an earn-out of up to €50 million, depending on production over the next five years.
Upon completion of the transaction, subject to regulatory approval, the wind portfolio’s ownership will be: EDF Energies Nouvelles at 20 percent, GE Energy Financial Services at 40 percent and MEAG at 40 percent. EDF Energies Nouvelles will provide asset management and operation & maintenance services for the wind farms. The consortium envisions re-powering some of the wind farms, which feature 160 turbines, to improve their efficiency and reliability using GE technology.
Each member of the consortium stated that the transaction is consistent with its renewable energy investment strategy.
“This transaction is a great opportunity for EDF Energies Nouvelles to expand its wind assets portfolio in France and scale up its O&M business. GE’s and MEAG’s diligence and knowledge of this industry allowed us to sign this acquisition in the targeted timeframe,” said Emmanuel Jaclot, executive vice president of EDF Energies Nouvelles.
“With this investment we are adding more sustainable investments with calculable risk and attractive returns to our portfolio, leveraging the know-how of the entire Group,” said MEAG Managing Director Holger Kerzel.
“We are pleased to partner with EDF Energies Nouvelles and MEAG in acquiring a substantial portfolio of operating wind projects in France, and intend to seek additional opportunities to expand our renewable energy assets in Europe,” said Andrew Marsden, a managing director and European leader at GE Energy Financial Services.
Additional details of the transaction were not disclosed.
Citi acted as exclusive financial advisor to the consortium.
Operating in Europe and North America, EDF Energies Nouvelles is a market leader in green electricity production, with a portfolio of 4,200 MW of gross installed capacity. With a development focused on wind and solar photovoltaic energy, the Company recently entered 3 new promising markets: Israel, Morocco and South Africa, and is expanding its business in offshore wind energy. The Company is also present in other segments of the renewable energy market: marine energy, biogas, biomass and small hydro as well as in distributed energies. EDF EN manages renewable energy projects’ development, financing, construction as well as operation and maintenance for its own accord and for third parties. EDF Energies Nouvelles is a subsidiary of the EDF Group and its renewable energy arm.