The Energy Transition Europe fund approved EUR 16 million for the refinancing of the Ogorje wind farm in Croatia, with a capacity of 43 MW. The power plant is owned by Akuo Energy.
The investment is undertaken by Energy Transition International Capital (ETIC) on behalf of the Energy Transition Europe fund. The transaction marks ETIC’s market entry into Croatia, which is transforming its energy mix, according to the announcement.
The Ogorje wind farm, owned by Akuo Energy, is located inland of Split, Croatia’s second-largest city.
ETIC intends to continue its investments in the Balkans
The aim of the operation via the issuance of convertible bonds is to optimize the project by refinancing the holding company’s quasi-equity, ETIC said. Moreover, profitability could evolve depending on the risk profile and the electricity sales strategy, it added.
The Energy Transition International Capital pointed out that it intends to continue its investments in the Balkans. The company said it would contribute to reducing greenhouse gas emissions and to the region’s energy independence. The region of 11 countries and 60 million inhabitants is one of the main victims of the energy crisis in Europe, ETIC underscored.
The deal is for the Energy Transition Europe fund’s fifth investment
The deal for the Ogorje wind farm is the Energy Transition Europe fund’s fifth investment, after it invested EUR 20 million in 359 projects with a total capacity of 158 MW.
The wind farm, which came into service in December 2015, enjoys a 14-year power purchase tariff with Croatia’s state-owned electricity producer HEP Group. The contract expires in 2029. The facility produces 97 GWh per year and enables CO2 emissions to be reduced by 16,000 tons a year.
The Energy Transition Europe, a closed fund aimed exclusively at professional clients, is financing energy transition infrastructure – new European renewable energy production and storage facilities, and the refinancing of projects that are already operational.