Meinl International Power Ltd. has evaluated around 210 investment possibilities in the last six months. Some twenty projects have already been launched or are currently in the development phase and another nine projects are in the „Pre-Due Diligence" or „Due Diligence" phase. Five gas, wind and photovoltaics energy projects have already been signed.
Meinl International Power’s business model is functioning and being successfully implemented. The large number of investment possibilities which the group has been able tot evaluate confirms the great market potential. Continuously growing power consumption and related price increases are the basis for long-term investments in successful and profitable energy projects. After merely six months the group has been able to conclude five projects with a total investment volume of EUR 365 million and installed total output 336 MW, all in accordance with a careful investment policy that takes all related risk factors into account.
Meinl International Power has established a position in future-oriented renewable energy and invests in the two renewable energy sources that have the strongest growth potential – wind and photovoltaics. High mid-term and long-term legally guaranteed feed-in tariffs, as well as the purchase commitments offered by local distribution network operators, create very attractive framework conditions for investments in the alternative energy sector. Stable cash-flows can be generated on the basis of mature technology with little risk and short construction periods. Early entry in the market generates long-term advantages for Meinl International Power’s investments.
The acquisition of „Hohenlohe" Wind Park at the end of 2007 was an extraordinary opportunity to invest with a very experienced partner in the development and operation of wind power infrastructure. The wind park with a total investment volume of around EUR 40.8 million has been fully operational since the end of January. Moreover, rights for the future development of two wind power facilities in Slovakia have been secured.
The solar park „Almeria" in Andalusia, South Spain, with installed output of around 15 MW, is the biggest photovoltaics facility in Europe. Total investment costs for this solar project represent some EUR 87 million. Spain is endowed with superior solar radiation values and has an extremely attractive feed-in compensation system.
At the end of October 2007 contracts for a gas power project in Hungary were signed with a total investment volume representing about EUR 140 million. Meinl International Power participates in this project with 24% and has an option for another 25%. Construction will start very soon.
The group’s current product mix consists of around 233 MW gas, 88 MW wind and 15 MW photovoltaics and represents an excellent blend. Expected returns on equity in case of alternative energy investments, as well as on the gas power station project in Hungary, are well above 10 %.
A further nine projects with a total investment volume of EUR 1.63 billion and installed total output of around 1.032 MW are in the advanced evaluation stage. Three projects in the conventional sector with installed output of around 925 MW are being analysed. The other six projects involve 3 in the wind power sector (some 80 MW) and 3 in photovoltaics (some 30 MW).
Meinl International Power is well along the road to the successful implementation of its business strategy. Liquid funds are held in secure and profitable short-term securities under the strictest assessment criteria until the point when they can be invested in energy assets.
In case of questions please contact Ms. Mag. Triebl (
triebl@meinlpower.com)
