Eolus, a leading renewable energy company, has recently made a significant sale by transferring a portfolio of wind power projects in Sweden to BKW. The combined capacity of these projects totals 125MW and includes the sites Skallberget/Utterberget, Tjärnäs, and Rosenskog. Although these projects are currently under construction, they are expected to commence commercial operations in the fourth quarter of 2023.
The transaction encompasses the acquisition of all shares in the respective project companies, valuing the enterprise at €189 million, with a share purchase price of €19 million. Eolus will retain responsibility for managing the construction of the wind farms through a Construction Management Agreement (CMA) acting on behalf of BKW.
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To power these developments, a total of 19 Siemens Gamesa SG 6.6-170 turbines will be deployed across the three sites. This selection aligns with Eolus's commitment to utilizing reliable and efficient technology for its renewable energy projects.
Under the terms of the Construction Management Agreement (CMA), revenues are estimated to reach approximately €29.5 million and will be recognized gradually throughout the remaining construction period using the percentage of completion method. As of the end of the second quarter, the projects have achieved a significant degree of completion. The Rosenskog project, with a capacity of 19MW, stands at around 75% completion, while the Skallberget/Utterberget (79MW) and Tjärnäs (26MW) sites are estimated to be around 55% complete.
Furthermore, Eolus will provide long-term technical, operational, and administrative services for the wind farms, reinforcing its commitment to supporting sustainable energy infrastructure beyond the construction phase.
Situated in price area SE3 of Southern Sweden, the three wind developments address the pressing need for additional electricity production in the region. These projects will contribute to the supply of renewable energy at reasonable prices for private individuals and businesses, promoting a sustainable and environmentally friendly energy sector.
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In a significant development, a major global energy company has entered into a power purchase agreement (PPA) to acquire all the electricity generated by the wind farms. This strategic partnership ensures a stable and reliable market for the renewable energy produced, further bolstering the prospects of these wind power projects.
In light of these recent developments, Eolus continues to solidify its position as a key player in the renewable energy sector, driving forward the transition to clean energy sources and supporting the wider goals of a sustainable future.
