Aquila European Renewables to sell stake in 150MW Tesla wind farm in Norway

Aquila European Renewables has announced the sale of its 25.9% interest in the Tesla wind farm, a 150 MW onshore wind project located in southern Norway. The sale, made to Norwegian energy company Sunnhordland Kraftlag AS (SKL), is valued at approximately EUR 27.1 million, representing a 10.8% premium to the wind farm’s carrying value as of June 30, 2024. The Tesla wind farm, acquired by Aquila in 2019, has been a significant asset for the company, contributing to its diversified renewable energy portfolio.

The majority of the proceeds from the sale will be used to repay the company’s Revolving Credit Facility (RCF), which is currently drawn to EUR 26.1 million. The transaction is expected to reduce Aquila European Renewables’ total leverage from 36.3% to 31.7% on a pro forma basis. The completion of the sale is subject to regulatory approvals, with finalization expected by October 2024. Ian Nolan, Chairman of Aquila European Renewables, emphasized that the sale is part of the company’s strategy to secure value appreciation in its portfolio while addressing the varying liquidity and pricing dynamics in the renewable energy sector.

Strategic Implications for Renewable Investments

The disposal of the Tesla wind farm demonstrates Aquila’s strategic efforts to optimize its portfolio by selling assets at a premium when market conditions are favorable. This approach allows the company to strengthen its balance sheet, reduce leverage, and reinvest in high-growth renewable energy opportunities across Europe. By focusing on a balanced mix of wind, solar PV, and hydropower investments, Aquila aims to provide stable, long-term returns for investors while supporting the energy transition.