Tailwind for RES projects licensed by 2018

Tailwind for RES projects licensed by 2018

According to construction sector professionals, the recent agreement between Intracom Holdings and Cubico Sustainable Investments on the sale of the sole wind park at Viotia in central Greece proves just how attractive renewable energy sources projects are if their license was issued by 2018.

The wind park in question has been operating since 2015, which means it enjoys the highest guaranteed rates in comparison with more recent parks, whose rates are determined via auctions through competitive procedures.

Data show that the Viotia wind park will collect a guaranteed revenue of 105 euros per megawatt/hour until 2035. This is a particularly high rate, especially compared with those stemming from the current tenders, which generally produce rates between 55 and 70 euros/MWh.

In the 2019 financial year the wind park’s operator K-Wind – the Intracom Holdings subsidiary in the RES sector – showed an operating profit margin of 73%. In 2018, when wind conditions were better, the same earnings margin had come to 80.8%.

Obviously, RES projects with these specific features are in particularly high demand by interested investors. In this context, the holdings arm of Intracom announced the completion of the sale of the 21 MW wind park at Sterniza in Viotia. The agreed price is €18.37 million, with the prospect of a €1 million increase if the capacity of the park is extended by 12 MW. This is just a formality, as works on the extension are due to begin soon. 

Cubico is a strong international player in the RES sector, with a presence in 13 countries and its installed power coming to 3.2 gigawatts. The company is jointly owned by Ontario Teachers’ Pension Plan and PSP Investments, both Canadian.

The transaction would have been completed earlier, but procedures were stalled due to the coronavirus measures. Dimitris Klonis, chief executive officer at Intracom Holdings, said upon the completion of the transaction that “the presence of Intracom in the energy sector continues to be a strategic choice of the group and we intend to probe any chances of reinvesting in the sector.”

Acquisitions in RES have been coming thick and fast in the last few months, the most recent being Terna Energy’s acquisition of R.F. Energy Omalies SA.

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