A European independent power producer is expanding its asset base on the continent. Israel-headquartered Econergy on September 15 said it is entering the French market with a €134-million ($155 million) acquisition of Escofi, a private wind energy platform of about 740 MW.
Econergy, which has offices across Europe, said the deal significantly expands the company’s European wind asset base, bringing its total renewable portfolio to 13 GW. Escofi, founded in 1988, originates, finances, builds, and operates onshore wind projects, with its wind energy portfolio across four development stages: 128 MW in commercial operation, 34 MW under construction, 147 MW in advanced development stage (with building permits and grid connection approvals in place and construction due to commence between 2028 and 2030), and 432 MW in early and mid-stage development.
Escofi’s portfolio is concentrated in the Hauts-de-France and Grand Est regions of northern France, which officials said have the strongest onshore wind conditions and regulatory environments in the country.
20-Year Contracted Revenues
More than 90% of Escofi’s operational and under-construction capacity benefits from 20-year contracted revenues under France’s Contracts for Difference (CfDs) regime, providing a stable, long-term revenue stream for the portfolio. Escofi in July of this year secured additional CfDs for three more projects totaling 46 MW at prices above €80/MWh ($92/MWh) for 20-year terms, further strengthening the portfolio’s contracted revenue base.
“The acquisition of Escofi is a significant strategic step for Econergy, establishing our presence in France and materially expanding our European wind platform,” said Eyal Podhorzer, CEO of Econergy. “Escofi brings us a proven, 37-year-old French onshore wind operator with a high-quality operational fleet and a strong pipeline of projects with 20-year CfD revenues located in the best wind regions in France. Combined with our existing European platform, this gives Econergy a stronger and more geographically diversified base of long-term, contracted cash flows to build on.”
Escofi’s 309 MW of operational, under-construction, and advanced-development projects are expected to generate annual revenues of €59-65 million and EBITDA of €47-53 million on a representative-year basis. By 2030, on completion of the projects under construction and the 147-MW advanced pipeline, Escofi’s operational capacity is expected to reach about 300 MW, with project-level EBITDA of about €42–44 million. Escofi’s effective ownership across projects stands at about 91%, and the 432-MW early- and mid-stage pipeline provides the platform’s long-term growth runway, according to the company.
Potential for Repowering
Econergy on Tuesday said the company also sees repowering potential across many of the company’s operating assets, with one repowering project underway and a second having won a recent CfD tender. The company said it sees complementary merger and acquisition opportunities in the French onshore wind market, commercial optimization across CfD tenders and merchant sales, and medium-term hybridization potential to co-locate battery storage at existing wind sites.
Econergy’s entry into the French market also marks a milestone in its long-standing partnership with RGREEN INVEST, which has been a partner of Econergy for more than 10 years and a shareholder since 2021 through its INFRAGREEN equity strategy. RGREEN INVEST supported Econergy in the Escofi transaction, and continues to accompany Econergy’s development across European renewable energy markets.
Marathon Capital acted as the buy-side advisor, KPMG as the financial and tax advisor, and Linklaters as legal advisor to Econergy on the transaction.
Econergy’s European platform now includes eight markets (France, Romania, UK, Italy, Germany, Poland, Spain, and Greece) and includes a substantial French onshore wind portfolio alongside its existing solar, wind, and storage activities. The company’s development pipeline now exceeds 13 GW, including 6 GW of storage.
—Darrell Proctor is a senior editor for POWER.
