Eolus sells Jenasen wind farm to Munich Re

Eolus has signed an agreement with Munich Re regarding the sale of Jenåsen wind farm in Sweden.

The project, located in Liden in Sundsvall municipality, comprises 23 Vestas turbines with an installed capacity of 79 MW. The electricity produced by the wind farm will be sold to Google via a power purchase agreement (PPA).

The transaction covers the sale of all shares in a project company that owns the wind farm. The purchase price amounts to €106 million (US$119 million). Take over and payment is expected to occur after the completion of the wind farm in the summer of 2018.

As part of the agreement Eolus has been entrusted to provide technical, operational and administrative services for the wind farm in order to maximize outcome and production from the facility.

​In connection with the agreement Eolus will, for €9 million, acquire the right to 96 percent of all electricity certificates that will be produced during the 15 year period the wind farm is eligible for certificates.

Eolus CEO Per Witalisson, said:

"I´m proud that Eolus yet again is entrusted to deliver a wind farm to Munich Re. Jenåsen is the sixth wind farm developed by Eolus that MEAG/Munich Re invests in. These investments total about 147 MW."

"Through the political agreement regarding the extension of the electricity certificate system the conditions on the market have been clarified. By acquiring the right to these electricity certificates a recurring cash flow for Eolus is generated and we see a potential upside for Eolus earnings"

Eolus deputy CEO and COO Marcus Landelin, added:

"We greatly value the relationship that Eolus has formed with MEAG/Munich Re. We will do our utmost to meet the expectations that follows with managing their large investments in Swedish wind power"

MEAG Managing Director Holger Kerzel explained:

"We are pleased to announce a further project acquisition in Sweden. The investment makes an attractive and lasting contribution to the risk diversification of our portfolio and helps to cover Munich Re’s long-term liabilities deriving from its insurance business."