Masdar acquires stake in Montenegro’s first wind farm
Masdar, Abu Dhabi Future Energy Company, today signed a share purchase agreement (SPA) with Akuo Energy, the leading French IPP in renewable energy, to enter into the Krnovo Wind Farm, Montenegro’s first wind energy project.
Hannigan, Chief Financial Officer of Masdar, and Eric Scotto, Chief Executive Officer of Akuo Energy, during Abu Dhabi Sustainability Week 2018 in the presence of Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar and other delegates.
Under the terms of the agreement, Masdar will acquire 49 per cent of Krnovo Green Energy, a subsidiary of Akuo Energy and Montenegro-based LLC owning the now operational 72-megawatt (MW) onshore wind farm. Montenegro is a renewable energy leader in Europe, with more than 40 per cent of its domestic electricity consumption coming from clean energy sources.
Built in one phase, 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.
On stream since November 2017, the Krnovo wind farm is now supplying approximately 45,000 households under a 12-year power purchase agreement with the state utility Crnogorski operator tržišta električne energije (COTEE). It is also displacing an estimated 80,000 tonnes of carbon emissions annually.
Krnovo is Masdar’s second wind farm in the Western Balkans. Abu Dhabi’s renewable energy company is a partner in the 158MW Čibuk 1 wind farm in Serbia, the largest in the country, which secured financing in October.
“We’re excited to consolidate our presence in mainland Europe through Krnovo and to enter into a partnership with Akuo Energy, a proven renewable energy leader with a wide geographical reach,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “Commercial renewable energy solutions have a critical role to play in Montenegro’s energy future, and our two companies are eager to support the country’s transitions towards cleaner energy sources.”
The Paris-based renewable energy company Akuo Energy SAS develops, finances, builds and operates solar, wind, biomass and hydro power plants. Established in 2007, the company whose headquarters are in Paris, France, operates in 13 other countries around the world.
Akuo Energy CEO and cofounder Eric Scotto said: “Krnovo is a first-class asset, the first of its kind in Montenegro, both in size and as a wind farm. We are delighted to welcome a partner like Masdar onboard such an asset. With regards to its achievements and strong ambitions, Masdar is a key player in renewable energy and has a global footprint. We would like to wholeheartedly thank all the teams for the quality of the work undertaken.”
Since 2006, Masdar has invested in renewable energy projects with a combined value of more than US$8.5 billion. The company’s share of this investment is over US$2.7 billion and the electricity generating capacity of these projects, which are either fully operational or under development, is nearly 3 gigawatts (GW) gross.
Masdar continues to grow its wind energy portfolio which includes the world’s largest offshore wind farm, London Array, the Middle East’s first utility-scale wind farm (Tafila in Jordan), the largest wind project in the Western Balkans (Čibuk 1), and Hywind Scotland, the world’s first commercial-scale floating wind park.
Masdar’s Clean Energy division is a leading developer and operator of utility-scale, grid-tied projects; applications providing energy access to communities away from the electricity grid; and carbon abatement projects.
