Swiss energy investor buys German offshore wind farm

Spanish energy company Iberdrola has signed an agreement with Energy Infrastructure Partners (EIP) to sell a 49 percent stake in the 350 MW Wiking offshore wind farm in the German Baltic Sea.

The transaction is valued at around EUR 700 million and Iberdrola retains a majority stake of 51 percent.

According to the agreement, the total value of Vikings is around EUR 1.425 billion. Iberdrola will continue to control and manage this asset and direct the operation and maintenance services.

EIP is a Swiss infrastructure investment company focused on the global energy transition, with a track record as a long-term shareholder in the industry and experience in infrastructure and renewable technologies, Iberdrola said. EIP also has a 25 percent stake in the 378 MW Arkona wind farm in the German Baltic Sea.

Wiking is one of Iberdrola’s flagship projects and was the first offshore wind farm to be developed by the group itself. The wind farm has been supplying around 350,000 German households with clean electricity since it went into operation in 2018.

Wikinger operates according to the German feed-in tariff system, which offers a guaranteed price for all electricity produced by the Wiking wind farm until 2037.

Unlike other fixed-price off-take arrangements, the wind farm and other assets in the system can sell the electricity they produce at market prices whenever they exceed the tariff, EIP said.

“Opportunities to join global market leaders like Iberdrola as an investment partner in a wind farm of this caliber – and with access to one of the most attractive regulatory regimes in the world – don’t come along that often.” said Roland DorigCo-Founder and Managing Partner of EIP.

“This is a particularly proud day for our investors and another important moment in our growth story.”

The transaction is intended to further advance Iberdrola’s rotation plan to finance new renewable energy projects under development.

The company had almost 1,300 MW of offshore capacity operational by the end of June 2022. In addition, it has 3,000 MW under construction, another 4,000 MW secured and an extensive project pipeline under development.

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