TEL AVIV, Israel, May 29, 2019 /PRNewswire/ -- Enlight Renewable Energy (TASE: ENLT) today reports that it has signed a series of agreements to acquire, invest in and construct a 113 Megawatts wind farm in Sweden which is in ready to build status. The "Picasso" project is located in southern Sweden and is expected to include 27 wind turbines of 4.2 megawatts each. The project has completed all material development processes. Initial construction works will commence immediately, and Enlight estimates that the financial closing of the project will be completed in the fourth quarter of 2019, with commercial operation expected in the first half of 2021.
The total investment in the project is estimated at EUR 135-140 million, including the agreements for construction, management and acquisition of rights in the project company. Enlight estimates that the equity required for the project will be approximately 40%-45% of the total investment.
The project company will sell approximately half of the electricity produced by the facility for the first 12 years under a commercial agreement for the sale of electricity, and the balance of production will be sold on the electricity market of northern Europe, the Nord Pool, which is Europe's largest electricity market. Enlight is under negotiations for PPA as part of which the price of electricity for said production is fixed for a period of 12 years.
Based on the aforementioned mix and the current forecasts for future electricity prices in Sweden by POYRY, electricity sales are expected to amount to EUR 10-12 million annually in the first 12 years and approximately EUR 17-24 million annually for the next 18 years. The supply and service agreements for the turbines were signed with the global leading turbine supplier Vestas, and include a guarantee for a lifespan of 30 years for the turbines. The contractor for the balance of plant construction is Svevia, a leading Swedish-based company with extensive experience in infrastructure projects and the construction of wind farms.
Gilad Yavetz, CEO of Enlight, said, "The signing of the deal in Sweden is part of a far-reaching strategic move by Enlight to grow its activity in developed markets, in which it is already possible to sell electricity from renewable sources at market prices and without subsidies. This deal joins the giant project being developed by Enlight in Spain and additional projects that the company is working on in developed markets. We estimate that this activity, together with our operations in Israel and developing markets as well, guarantees Enlight continued accelerated growth, while creating a balanced structure, strengthening diversification between the various sectors of our activity."
Enlight Renewable Energy, traded on the Tel Aviv Stock Exchange (TASE: ENLT) 125 Index, is 96% held by the general public. It is among the European leaders in development, financing, construction and operation of renewable energy projects, currently operating in Israel and Europe. Since its inception in 2008, the company has constructed over 130 projects with total capacity exceeding 500 MW, and is currently developing a significant pipeline in different countries, out of which over 600 MW are in advanced development stages and nearing ready to build.
Enlight's legal advisors for the deal were the Swedish branch of DLA Piper law firm.
SOURCE Enlight Renewable Energy