Pacifico Renewables Yield has signed an agreement to purchase a 15.6 MW onshore wind farm in Germany from a subsidiary of New Energies Systems (Mayen, Rhineland-Palatinate), a non-affiliated project development company.
The wind park is currently at an advanced stage of construction and is scheduled to be completed in early 2021. Once fully operational, the project is expected to generate approximately 37 GWh of green electricity per year, contributing to an annual reduction of almost 30,000 tons of CO2 emissions.
Following the purchase of a 21.2 MW photovoltaic portfolio in the first half of 2020, this second major transaction will increase the company’s portfolio capacity by approximately 19 percent to 96.6 MW in 2020.
In connection with this acquisition, Pacifico Renewables revolving credit facility will be increased to €16.3 million, which will allow for a fully debt-funded acquisition.
The onshore wind farm is located near Reudelsterz in Rhineland-Palatinate and consists of five Nordex N131 wind turbines with an expected total capacity of 15.6 MW. Land lease agreements, mostly with a tenor of at least 28 years and easements, have been secured and a full-scale operation and maintenance agreement of up to 20 years with an annual technical availability guarantee of 98 percent is in place.
The wind farm will benefit from a statutory 20-year remuneration of €79.3 per MWh (incl. current correction factor 2) under the German Renewable Energy Act (EEG 2017). Once fully operational, the total initial production of P50 electricity is expected to be approximately 37 GWh of green electricity p.a., resulting in an annual revenue of approximately €2.9 million.
“With the acquisition of this onshore wind park, we are not only adding an additional stable 20-year German feed-in tariff-based revenue stream to our portfolio. We are also demonstrating our ability to execute attractive growth opportunities beyond our strategic partner’s development pipeline.”Christoph Strasser, co-CEO Pacifico Renewables Yield.
The initial financing of the purchase price for this acquisition will be carried out solely by the existing revolving credit facility of the Company provided by Triodos Bank. In connection with this transaction, the facility will be increased from currently €8.35 million to €16.3 million.
The facility can be set up for up to 18 months at an interest rate of 3.85 percent.
“Applying this tailored structure to finance acquisitions is another proof of concept for our key priority to operate with minimal dry powder and for our agility. The additional financial flexibility provided by the increased RCF will also be of strategic importance going forward to execute our growth plans and continue demonstrating rigorous financial discipline.”Dr. Martin Siddiqui, co-CEOPacifico Renewables Yield.