Pacifico Renewables buys 15.6 MW wind project in Rhineland-Palatinate

Pacifico Renewables Yield AG has signed an agreement to acquire a 15.6 MW onshore wind farm in Germany from a subsidiary of New Energies Systems AG, an unaffiliated project development company. The wind park is currently at an advanced stage of construction and is scheduled for completion in early 2021. Once fully operational, the project is expected to produce approximately 37 GWh of green electricity per year, contributing to an annual reduction of CO2 emissions of almost 30,000 tons.

The onshore wind park is located close to Reudelsterz in Rhineland-Palatinate and comprises 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 an up to 20-year full-scope operations and maintenance agreement with a technical annual availability guarantee of 98% is in place. The wind farm will benefit from a 20-year statutorily determining remuneration of EUR79.3 (US$93.8) per MWh  under the German Renewable Energy Law (EEG 2017). Once fully operational, the total initial P50 electricity production is expected to be approximately 37 GWh of green electricity per annum which would result in annual revenues of approximately EUR 2.9 million (US$3.4 million). The parties agreed on an enterprise value of EUR35 million (US$41.4 million), including senior project financing provided by a reputable German bank.

Closing of the transaction is subject to certain conditions, including the commissioning of all turbines and successful completion of the trial period, and is expected to occur in early 2021.

Greenberg Traurig acts as legal counsel, DNV GL is appointed as a technical advisor, and Pacifico Energy Partners GmbH as a broker to the company.