UAE’s Masdar signs deal to invest in Montenegro wind farm Krnovo

Masdar, Abu Dhabi-based renewable energy company has signed a share purchase agreement with Akuo Energy, the leading French IPP in renewable energy, to enter into Krnovo wind farm in Montenegro, which is on stream since November 2017.

Both sides announced that under the agreement, Masdar will acquire 49% of Krnovo Green Energy. The agreement was signed by Niall Hannigan, Masdar’s chief financial officer, and Eric Scotto, CEO of Akuo Energy, during Abu Dhabi Sustainability Week 2018, the local media reports.

The wind farm was built by the Austrian company Ivicom Consulting and the French Akuo Energy. Construction started in mid-2015 and the wind farm now has installed power of 72 MW with the investors planning to produce some 200 GWh a year.

The Montenegrin government signed a contract with the Krnovo wind farm owners under which it is obliged to guarantee a fixed price of EUR 95.99 per MWh for the first 12 years of production.

The Montenegrin Ministry of Sustainable Development and Tourism issued an operating permit late in August 2017 for the Krnovo wind farm which started tests of its wind turbines in May last year.

The Krnovo project comprises 26 GE wind turbines. Project financing was secured from the European Bank for Reconstruction and Development (EBRD), KfW IPEX-Bank GmbH, and the French development financial institution Proparco, the Acua company statement reads.

Krnovo wind power plant was the first capital investment in the energy sector in decades in Montenegro at the time.  Its implementation should help Montenegro achieve renewable energy goals which entail 1/3 of total energy consumption to be produced from renewable energy sources by 2020.

Montenegro concluded the contract on the lease of the public land in August 2010 for a period of 20 years, with a possibility of an extension up to a maximum of five years. For the first 12 years, the price of the electricity generated by the wind farm is guaranteed and it will not be less than EUR 95.99 per MW/h.