MEAG has agreed to buy a 75 per cent stake in Stor-Skälsjön, a 260 MW wind power project in Sweden, from Eolus Vind and Hydro REIN. Under this agreement, Eolus will sell its 51 per cent stake in the wind project for consideration of $19.8 million, while Hydro REIN will sell its 24 per cent stake for $9.3 million. Hydro REIN will preserve its 25 per cent stake in the project and will continue to be a co-owner of the project.
On a 100 per cent basis, the acquisition includes 75 per cent of the project company’s equity for a total enterprise value of $390 million. Under a construction management agreement, Eolus and Hydro REIN will construct the wind power station on behalf of the investors (CMA). In addition, for a period of 15 years, the two companies have agreed to provide technical, operational, and administrative services for the wind farm. Siemens Gamesa’s 42 wind turbines will be used in the wind project. The project’s construction has begun, and it will be completed in the autumn of 2023.
In September 2021, EDF Renewables North America and MEAG entered into a strategic partnership under which a subsidiary of Munich Re would acquire a 50 per cent stake in two renewable energy projects in California. The two projects include the Maverick 6 Solar-plus-Storage Project and the Maverick 7 Solar Project. The former has a capacity of 131 MW coupled with a 50 MW/200 MWh battery energy storage system, while the latter has a capacity of 179 MW.
REGlobal’s Views: With the current geopolitical climate and focus on energy transition, investors worldwide are working towards increasing their renewable energy portfolio through financing of greenfield projects as well as through acquisitions.