Geo Renewables secures €40m for Polish wind farms

The proceeds will be used by the two facilities, which have a combined capacity of 50MW, to refinance some of their construction costs.

Geo Renewables and EDP Renewables have signed a deal to refinance two existing wind farms in Poland.

The local developer and its international, Lisbon-listed partner have secured PLN168 million (€40 million; $55 million) from state-owned BOS Bank to provide fresh liquidity to the plants, which together have a capacity of 50 megawatts (MW).

The wind farms are located in the municipality of Zgorzelec and in the vicinity of Jedrzychowice, south-west Poland. Both commenced full commercial operations in 2013.

“In the current uncertain regulatory environment, this is a landmark transaction for Poland and GEO Renewables,” said Radek Nowak, founder and managing director at GEO Renewables.

GEO Renewables currently has another 60MW wind farm currently in commissioning and expects to put an additional 36MW into construction in early 2014. It has a total portfolio of approximately 1,000MW of projects with secured grid connection rights, of which around 750MW will be ready for construction in the next three years.

The company is backed by EnerCap Power Fund, a seven-year old private equity fund focused on clean energy in Central and Eastern Europe. The €98 million vehicle is managed by Czech-based EnerCap Capital Partners.

With EnerCap Power Fund now fully committed, the firm has started raising its next clean energy fund with a first closing expected in the first quarter of this year according to market sources. The vehicle has a target of €350 million.

Investors in the first fund include the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and Sumitomo Mitsui Banking Corporation (SMBC).