Swiss Energy Investor Buys Into German Offshore Wind Farm

Spanish energy company Iberdrola has signed an agreement with Energy Infrastructure Partners (EIP) for the sale of a 49 per cent stake in the 350 MW Wikinger offshore wind farm in the German Baltic Sea.

Iberdrola; Illustration

The transaction is valued at around EUR 700 million, and Iberdrola will maintain a majority stake of 51 per cent.

According to the agreement, Wikinger’s total valuation amounts to approximately EUR 1.425 billion. Iberdrola will continue to control and manage this asset, leading the operations and maintenance services.

EIP is a Swiss infrastructure investment company focused on the global energy transition, with a track record as a long-term shareholder in the industry and experience in infrastructure and renewable technology, Iberdrola said. EIP also holds a 25 per cent stake in the 378 MW Arkona wind farm in the German Baltic Sea.

Wikinger is one of Iberdrola’s flagship operational projects and was the first offshore wind farm developed by the group on its own. The wind farm has been supplying clean energy to approximately 350,000 German households since it was commissioned in 2018.

Wikinger operates under Germany’s feed-in tariff regime which offers a guaranteed price for all electricity produced by the Wikinger wind farm through 2037.

Unlike other fixed-price offtake arrangements, the wind farm and other assets in the scheme can sell the power they produce at market prices whenever they exceed the tariff, EIP said.

”Opportunities to join global leaders like Iberdrola as investment partners in a wind farm of this caliber – and with access to one of the most attractive regulatory schemes in the world – do not come around that often,” said Roland Dörig, EIP’s co-founder and managing partner.

”It’s an especially proud day for our investors and another important moment in our growth story.”

The transaction is said to further advance Iberdrola’s asset rotation plan to finance new renewable projects under development.

The company had almost 1,300 MW of offshore capacity in operation by the end of June 2022. In addition, it has 3,000 MW under construction, another 4,000 MW secured, and an extensive project pipeline under development.

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