Aquila listed renewables fund to acquire Finnish wind farm

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Aquila European Renewables Income Fund (AERIF), which listed on the London Stock Exchange in May, has made its fourth investment, securing the exclusive right to acquire a Finnish wind farm.

It has entered into a short-term financing agreement, enabling it to buy Aalto Wind No 2 Ltd Oy, which holds the Ii Olhava wind farm and Ii Olhava Extension.

Aquila said the final consideration for the asset would amount to approximately 15.5% of the proceeds raised from its €154.3m IPO, implying a price of €23.9m.

The acquisition will also mean AERIF is 55.1% invested and is diversified across four countries, including also Portugal, Denmark and Norway.

The wind farm is approximately 50km north of the city of Oulu and has an installed capacity of 34.55MW and an expected production of 99.2GWh, based on historical production values.

The park comprises eight Vestas V112 and three Vestas V126 turbines with capacities of between 3.1MW and 3.3MW.

The wind parks qualify for the Finnish feed-in tariff support scheme, structured as a contract-for-difference (CfD). Project Olhava is eligible for the CfD premium for approximately five more years. The 9.9MW Olhava Extension is eligible for approximately six more years until September 2025.

The parks are also eligible for guarantees of origin (GoO) certificates. Each wind park receives one GoO per produced MWh. It is expected to enter into a GoO purchase agreement for up to five years to further hedge the market price exposure.

Aquila said it intended to conclude power purchase agreements as soon as market conditions and hedging solutions were feasible and considered attractive.

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