Israeli renewable energy investment company Sunflower is expanding its wind energy activity in Europe.
Through an 82% owned subsidiary, the company has signed an agreement for the purchase of licenses to construct up to five wind farms in Finland each producing 20 megawatts of power.
The cost of the licenses is €50,000 per megawatt, for a potential total of €5 million.
The company estimates the cost of construction of the wind farms at €1.6 million per megawatt, the total cost being dependent on the actual scope of the licenses purchased. The wind farms are expected to be ready within the next two years.
The Finnish government awards benefits for up to twelve years for projects not in excess of a total of 2,500 megawatts. Sunflower will receive the market rate for the power that the wind farms produce plus a supplementary payment calculated as the difference between the market price and the target price set by the Finnish government.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2014
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