LONDON (Dow Jones)--Portuguese utility Energias de Portgual Group SA's (EDP.LB) renewables arm Wednesday said it has bought a portfolio of Polish wind farms called Relax Wind Parks for EUR54 million and associated success fees.
EDP, through its subsidiary Nuevas Energías del Occidente or NEO, has acquired a gross capacity of 1,022 megawatts of wind farm projects at different stages of development.
The first wind farm, with 120 MW of installed capacity, is expected to start operations in 2009. The remaining capacity should be installed and ready to start operations between 2010 and 2013, the company said.
NEO will pay an average of EUR40,000 for every megawatt delivered. The success fee will be paid on top of the EUR54 million.
Turbines for the portfolio of wind farms have already been secured.
Poland is one of the more attractive countries for renewable investment in Central and Eastern Europe, NEO said. Poland expects to source 10.4% of its energy consumption from renewable energy sources between 2010-2014, the company added.
NEO expects Poland will need to install 4,000 MW of wind power capacity by 2014 to meet this target. The regulatory framework is stable allowing a better characterization of operating conditions.
Poland currently has 200 MW of installed wind power capacity.
Deutsche Bank (DB) and Portugal's Millennium bcp acted as financial advisers to EDP in this transaction.