Monday, September 28, 2020
Home Electricity Hungary's ALTEO expands its wind portfolio

Hungary’s ALTEO expands its wind portfolio

Hungarian alternative energy company ALTEO concluded an agreement to acquire a wind power plant park consisting of 7 units with a capacity of 15 megawatts (MW) electrical power in the vicinity of Bábolna. The acquisition is closely aligned to ALTEO’s strategy of operating power plants with renewable and high-efficiency energy production and, at the same time, the investment is also strengthening the company’s position on the domestic wind market.

The stock purchase agreement is the first step in the transaction amounting to 1.153 billion forints (3.288 million euros). Once the acquisition is finalised, the volume of ALTEO’s wind portfolio will amount to 47.5 MW, while the total power generation capacity of the company will exceed 122 MW. The produced electricity is sold in the framework of the so-called feed-in system with the licence expiring in 2025.

The current acquisition confirmed ALTEO’s second position on the Hungarian wind power market. The company’s energy production portfolio already includes wind farms in Ács, Jánossomorja, Pápakovács, Törökszentmiklós and, since last year, Bőnyi.

ALTEO’s CEO, Attila Chikán underlined that the acquisition of the Bábolna wind farm is an integral part of the company’s overall strategy and energy production portfolio, in which, in addition to high-efficiency natural gas-fired power plants, power plants using renewable energy sources will also play a key role.

“Our goal is to leverage the synergies in the simultaneous operation of different power generation units,” said Mr Chikán. “We also aim to significantly expand our gas power plant portfolio, that allows the integration of additional renewable capacities into the system, thus this transaction for ALTEO came just in the right time.”

Domonkos Kovács, Member of the Executive Board and Deputy CEO responsible for M&A and Capital Markets highlighted that from the outset ALTEO has placed a strong emphasis on the principles of environmental, corporate and social responsibility also while pursuing new investments.

“The COVID pandemic reaffirmed the importance of investments which are less exposed to changing economic circumstances and which can remain stable even in a crisis situation,” explained Mr Kovács. “Therefore, we see it as a significant achievement to expand our power plant portfolio with such an investment, that will produce electricity in the feed-in system for several years to come.”

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