An international consortium that includes General Electric’s (NYSE: GE) Energy Financial Service is set to purchase 32 fully-operating French wind farms from Iberdrola (MCE: IBE) in a deal worth around 350 million euros, or roughly $461.5 million.
The farms were commissioned between 2006 and 2012 and are situated all over France. Collectively, they have a capacity of 321.4 MW, and all electricity produced is sold under terms set by long-term contracts, subject to France’s feed-in tariffs.
The consortium includes EDF Energies Nouvelles and MEAG (Munich Re and ERGO’s asset management unit). The next five years’ production could provide for a further earn-out totaling up to 50 million euros, or about $66 million.
Once all regulatory measures go through and the transaction is complete, GE Energy Financial Services and MEAG will each own 40 percent of the portfolio, while EDF will pick up the remaining 20 percent.
The latter is to provide all asset management, operation, and maintenance coverage. GE’s technology is expected to be used in overhauling some of the wind farms.
From GE’s press release:
“We are pleased to partner with EDF Energies Nouvelles and MEAG in acquiring a substantial portfolio of operating wind projects in France, and intend to seek additional opportunities to expand our renewable energy assets in Europe,” said Andrew Marsden, a London-based managing director and European leader at GE Energy Financial Services.
EDF Nouvelles operates across North America and Europe, with 4,200 MW of installed capacity in green technologies. EDF focuses on wind and solar PV, and it is expanding into offshore wind programs.
GE Energy Financial Services commands a worldwide energy investment portfolio worth about $20 billion and is engaged in brokering and seeing through deals that allow GE to invest and expand into energy sectors, particularly clean tech.
MEAG manages about 234 billion euros ($308.5 billion) in assets for Munich Re and ERGO across Europe, Asia, and North America.
