Enel, the Italian energy group, has finalized the acquisition of a portfolio that consists of two onshore wind farms in Germany having a combined installed capacity of 51 megawatts. This transaction goes on to mark the very first significant asset transfer done by the group within the onshore wind sector in Germany.
The total value when it comes to the portfolio is almost €80mn, which is equivalent to $86.5mn as per the information provided by Enel. The assets are covered through a regulated tariff under a feed-in premium scheme that goes on to guarantee a minimum remuneration when the electricity prices on the market dip below a certain threshold. This mechanism is anticipated to generate almost €10 mn, or $10.8 mn, every year in ordinary earnings before interest, taxes, depreciation, and amortization – EBITDA for the group.
The deal syncs along with the strategy of the group to go ahead and enhance its presence across markets that offer regulatory balance along with predictable support mechanisms. Germany, being the largest renewable energy market in Europe, goes on to offer quite a favorable legal framework, which is regarded to be attractive by institutional investors across the sector.
This goes on to mark the first operational asset acquisition by Enel in the onshore wind farms in Germany. The group has, as a matter of fact, indicated that this transaction indeed fits into its geographically targeted expansion strategy, blending regulated profitability along with growth potential. However, there are no details that have been given when it comes to selling counterparties or also the exact location of wind farms.
This acquisition, in a way, enables Enel to immediately integrate its production capacity into the European portfolio that it possesses, thereby bypassing the development or the construction phase. This direct acquisition approach goes on to sync with a strategy that is focused in terms of optimizing the timelines and, at the same time, going ahead and securing short-term revenue streams.
The selection of Germany for this acquisition goes on to reflect the internal investment criteria by Enel, which includes macroeconomic stability along with a regulatory framework that is favorable to renewable energy. The group looks forward to continuing with this strategy across other European countries as well, which showcase similar characteristics.
The integration of such regulated wind assets offers an immediate growth lever, thereby making the group’s financial visibility stronger by way of stabilized revenue streams. This kind of asset transfer is a part of a much broader trend that exists within the energy sector and which apparently is marked by an intensification of acquisition activity taking place throughout the mature markets.