Eolus to sell 79MW Swedish wind farm to Munich Re

Eolus has agreed to sell its 79MW Jenåsen wind farm in the Sundsvall municipality of Sweden to Munich Re.

The electricity produced by the wind farm, which features 23 Vestas turbines, will be sold to Google via a power purchase agreement.

The transaction covers the sale of all shares in a project company that owns the wind farm. The purchase price amounts to EUR 106 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, located in Liden in Sundsvall municipality, in order to maximize outcome and production from the facility.

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."

In connection with the agreement Eolus will, for EUR 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: "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 said: "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 said: "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."