French wind attracts investors: Econergy invests more than EUR 134 million

Israeli independent power producer Econergy has entered the French renewable energy market. By joining forces with local player Escofi, it will build 740 MW of new generation capacity.

The acquisition underscores the long-term growth trend in onshore wind power in France, as reported by RenewablesNow. Israeli company Econergy develops onshore wind farms. It is now investing EUR 134.3 million in France, expanding its European platform with a 740 MW portfolio. The transaction combines assets in operation and under development with revenues secured by long-term contracts, providing the non-European company with a base for further expansion in France.

Escofi's portfolio includes 128 MW of operating wind farms, 34 MW under construction, 147 MW in advanced development and 432 MW in early- and mid-stage development. The assets will be concentrated in the Hauts-de-France and Grand Est regions, giving Econergy an established portfolio in two key French areas for onshore wind development.

A significant share of the acquired generation capacity benefits from France's contracts-for-difference (CfD) support mechanism. More than 90% of Escofi's operating and under-construction capacity is expected to receive CfD revenues for 20 years, ensuring long-term price certainty for a substantial part of the portfolio.

In July, Escofi also secured CfD contracts for three additional wind projects with a total installed capacity of 46 MW. The projects secured prices exceeding EUR 80 per MWh under 20-year contracts, strengthening the contracted component of the portfolio and supporting future project revenues. Operating, under-construction and advanced-stage assets totalling 309 MW are expected to generate annual revenues of EUR 59 million to EUR 65 million and EBITDA of EUR 47 million to EUR 53 million.