French renewables developer Neoen SA has acquired eight operational wind farms in Ireland for €25.8 million in cash. The portfolio represents an enterprise value in the range of €46 million.
The wind farms, totaling 53.4 MW, were previously owned by the Irish Infrastructure Fund — co-managed by AMP Capital and Irish Life Investment Managers — and the Energia Group, according to Aug. 1 news release.
The facilities currently sell their output via power purchase agreements. Neoen hopes to negotiate fresh commercial arrangements as the PPAs are set to gradually expire over the coming years.
The company also sees a repowering potential for the oldest of these assets to better tap wind resources. The wind farms were commissioned between 1998 and 2012.
The deal is expected to have limited contribution to Neoen's 2019 EBITDA. However, the company expects the wind assets to generate around €5 million of EBITDA per year from 2020 onward.