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Renewable Energy to buy Polish wind farm

Renewable Energy, the operator of renewable energy technologies, has entered into an agreement to buy the Kobylany Wind Farm site in Poland.

The agreement follows the signing of a non-binding letter of intent to purchase the site in December 2006 with a consortium of Polish companies and individuals. Plans for Kobylany envisage 30 megawatt (MW) of generating capacity with an accompanying off-take infrastructure and transformer station. The consortium have spent the last year working on the necessary opinions, administrative decisions and permits necessary for the development of the wind farm.

Renewable Energy Holdings plc said it will pay €68,000 per MW of generating capacity, making a total of €2.04 million. The agreement allows for an initial lease term of 25 years, with an option to extend for a further 25 year. The firm intends to finance the construction of the wind farm, expected to start late spring 2008, using its credit facility with Standard Chartered Bank. (sharecast.com)