Last wee, Pacifico Renewables Yield AG, an independent producer of electricity from renewable sources, closed the acquisition of three onshore wind parks located in northern Poland with a total capacity of 51.8 MW. Elevated electricity prices expected to benefit the Company’s 2021 financials
All of the electricity production of the wind parks in 2021 will be sold at merchant prices on the electricity market. The corresponding continuing strong merchant revenues in the fourth quarter will partly be reflected in the Company’s 2021 financials through the consolidation as of yesterday’s closing date. As the purchase agreement provides for a locked-box mechanism for the full year 2021, the Company however already before the closing date benefits from the high cash generation driven by elevated electricity prices. Despite weak wind conditions during the summer, the parks generated almost one million Euros of additional revenues year-to-date, compared to initial projections in 2020 when the Company secured the acquisition.
It is expected that a significant share of the expected annual electricity production of the wind parks of approximately 191 GWh will continue to be sold at merchant prices beyond 2021. In addition, the project benefits from a long-term and inflation-linked public support mechanism.
Christoph Strasser, Co-CEO: “This acquisition offers an attractive remuneration profile and inflation link of a considerable portion of expected revenues. This project also provides our group with additional debt capacity due to the project’s comparatively low leverage ratio.”