Enel and Siemens land wind farm contract in Morocco
March 15, 2016
Italian company Enel Green Power (EGP), Moroccan energy company Nareva Holding and German wind turbine manufacturer Siemens Wind Power have been pre-awarded the right to develop, design, finance, construct, operate and maintain five wind projects in Morocco for a total of 850MW.
The construction of the five plants will require a total investment of approximately €1bn mostly funded through project finance facilities.
The consortium has been awarded the preferred bidder status at the second phase of the wind integrated project tender held by the Moroccan utility ONEE (Office National de l'Electricitý et de l'Eau Potable). The consortium has been pre-awarded the right to develop, design, finance, construct, operate and maintain five wind projects in Morocco with a total capacity of 850MW, to be confirmed following the signing of the purchase agreements for the energy generated by the plants.
Out of the five projects, Midelt (150MW), Tanger (100MW) and Jbel Lahdid (200MW) are in northern Morocco while Tiskrad (300MW) and Boujdour (100MW) are in the south.
"This accomplishment demonstrates that our strategy to expand our footprint in Africa is paying off," said Francesco Venturini, CEO of EGP. "We are leveraging on our knowledge and expertise, in collaboration with our partners, to contribute to Morocco's ambitious energy plan that has renewables at its core. The country is an example in North Africa of reliability and transparency in supporting the development of renewable technologies."
EGP and Nareva will establish and own five special purpose vehicles (SPV) holding the projects. Siemens Wind Power will provide the wind turbines, with several components manufactured locally.
EGP will fund the cost of the project corresponding to its 50 per cent shareholding by a mix of equity and debt, the latter through project finance facilities provided by international financial institutions. EGP's investment is in line with the growth targets set out in the company's current strategic plan (2016-2019).
The wind farms are expected to be completed and enter operation between 2017 and 2020. In line with the tender rules, the energy generated by the five wind farms will be sold to ONEE under 20 year-power purchase agreements.
Once completed, the five facilities will contribute to meeting Morocco's growing energy demand and the country's objective to increase power produced from renewable sources. Renewables currently account for about 32 per cent of Morocco's generation mix and the country aims to increase this share to 42 per cent by 2020 and 52 per cent by 2030.