Novera to add 56 megawatt of German wind energy to its 120 megawatt European portfolio

Locally listed expatriate renewable energy outfit Novera is in negotiations to add up to 56 megawatts of German wind energy to its 120megawatt European portfolio. Managing director Shane Gannon said Novera had exclusive negotiation rights and was doing the deal in three tranches, the first for a 9-megawatt wind farm that is up and running. The remaining capacity covered by the negotiation rights is under construction at four other sites across Germany, and Novera hopes to add it to its wind portfolio in the next nine months.

Price is under negotiation but Mr Gannon said the price benchmark for European wind energy was about €1 million ($2.5 million) per megawatt of installed capacity. If negotiations are completed successfully, the new wind capacity will be sold to the Novera Macquarie Renewable Energy joint venture, with Novera receiving a developer's margin along the way. The joint venture, formed last year, is the carrying vehicle for all Novera's European energy assets, which include both wind and landfill gas sites.

The German wind projects are underpinned by 20-year fixed-price supply contacts, and average revenue per megawatt installed exceeds $275,000 a year. Potential revenue from the whole portfolio is $15.4 million a year. Mr Gannon said Novera would list on the London Stock Exchange's Alternative Investment Market by June. The listing was foreshadowed previously, then put off while the Macquarie joint venture was created. Mr Gannon said the listing could be accompanied by an equity raise, if a German wind deal was ready for funding. If not, no capital would be raised. Novera plans to stay listed in Australia in the foreseeable future.