VALOREM, a French independent green energy operator, raised from ALPHA BANK a financing for the construction of the MAGOULA wind farm, having a total installed capacity of 27MW and representing a total investment of €40M. MAGOULA is a landmark project for VALOREM, as it is its first wind farm in Greece.
This project, 100% owned by VALOREM, has secured a Feed in Tarif in July 2020 through the auction organised by Greece’s Regulatory Authority for Energy (RAE). The wind farm is located over Askio Mountain (Siniatsiko) to the northwest of Kozani town in northern Greece, at an elevation of 1,700m. It will be connected to the national grid through the Gratsiani substation. It will host six Vestas V150-4.5 MW wind turbines. The estimated annual gross production is 71 GWh, which is covering electricity needs of 18,000 households.
The construction will start end of 2022 with a commissioning forecasted for the first quarter of 2024. It will be managed by VALOREM’s subsidiary VALREA, and the works will be performed directly by AIR ENERGY as the main EPC Contractor of the project. The asset management will be performed in-house by VALOREM, and O&M will be subcontracted to Vestas under a long-term contract.
Philippe TAVERNIER , COO of VALOREM Group says:
“We aim to develop our presence outside France and support Europe to accelerate energy transition, achieve its green goals, reach energy autonomy and secure the supply of affordable green electricity. Following our solid business strategy, since 2019 we develop a mix RES portfolio in Greece with photovoltaics and wind farms. Greece is a key market for us, and we are delighted that our expansion there is supported by ALPHA BANK, our financial partner”.
VALOREM has secured a long-term bank financing from ALPHA BANK of nearly €31M, including a VAT tranche and a Debt Service Reserve Facility. In parallel, VALOREM and ALPHA BANK have put in place this year a Revolving Credit Facility in order to support the financing of the group’s activities in Greece. Together with MAGOULA, this brings the global funding capacity raised through ALPHA BANK up to €62M.
Yannis EMIRIS, ALPHA BANK’s General Manager of Wholesale Banking, stated:
As a leader in business lending in Greece, ALPHA BANK’s financing of VALOREM’s first wind project in our country, reiterates our Bank’s commitment to financing added-value projects that accelerate Greece’s energy transition to a greener future, and contribute to attaining sustainable economic, societal, and environmental growth.
Thomas STAVROU, Country Manager of REN VALOREM HELLAS says:
“After three years operating in Greece, we are very satisfied to see that VALOREM has gained market’s and country’s trust. Greece has still an untapped RES potential, mainly coming from wind and solar, which allows to be optimistic about reaching decarbonization and successfully achieving its environmental targets. Green electricity, apart from benefiting the environment, is a fundamental factor of economic growth due to its low cost. We are very pleased that we support country’s sustainable development through our RES projects”.
VALOREM is gradually increasing its presence in Greece and has a current REN portfolio of circa 700MW under development, intended to be implemented in close cooperation with local partners and communities. Further to the closing of the Matkussaari wind farm (148MW) in Finland earlier this year, this new project sets VALOREM on a path to becoming a leading European IPP.
The VALOREM Group would like to thank all the advisors who have made this project successful: Watson Farley & Williams (Sponsor’s Legal Advisor), ESTER (Sponsor’s Hedge Advisor), TUV HELLAS (Lender’s Technical Advisor), Reed Smith (Lender’s Legal Advisor), Marsh (Lender’s Insurance Advisor) and GT (Lender’s Tax Advisor).
