ENERGA to take over part of IBERDROLA Energy assets

ENERGA Hydro and PGE Polska Grupa Energetyczna signed an agreement today with IBERDROLA Renovables Energía S.A.U. to purchase assets of the Spanish company in Poland.

The agreement envisages the purchase of a 75% share in IBERDROLA Renewables Polska. ENERGA and PGE intend to buy 100% shares, including 25% from a minority shareholder – the European Bank for Reconstruction and Development (EBRD). The total value of the transaction is estimated at approx. PLN 1.1bn.

After completion of the transaction, ENERGA Group will take over two wind farms operating in northern Poland – Karścino in Zachodniopomorskie Province and Bystra in Pomorskie Province – with a total installed capacity of 114 MW, as well as a project package. PGE, on the other hand, will take over operating wind farms with an installed capacity of 70.5 MW and a project package.

The transaction is in line with the strategic objective of ENERGA Group, which is to operate environmentally friendly energy sources. ENERGA focuses on projects characterised by the lowest carbon dioxide emissions, aiming to reduce emission levels to 0.36 tonnes/MWh by 2020.

It is expected that the transactions will be completed within the next few months. Closing the deal will be conditional on approval by the Office of Competition and Consumer Protection. Morgan Stanley, an investment bank, is playing the role of transaction advisor for ENERGA Group in the asset acquisition process.

This is not the first wind farm acquisition for ENERGA Group. Last week, ENERGA Hydro signed an agreement to take over some of the assets of DONG Energy, a Danish company. Pursuant to that agreement, ENERGA will take over an operating wind farm in Karcino in Zachodniopomorskie Province, with a capacity of 51 MW, and five projects in progress in northern Poland, with a total planned capacity of approx. 220 MW.

The completion of the deal with DONG Energy and IBERDROLA Renowables will reinforce – in line with the investment strategy – the position of ENERGA Group on the renewable energy market. The installed capacity of RES will increase from 343 MW to more than 500 MW, and production from 1.3 TWh to 1.8 TWh.