German power firm EnBW has offered to acquire the country-based insolvent wind power company Prokon, which presently generates around 537MW of renewable energy.
Prokon creditor’s committee has allowed the initial EnBW offer to its assets.
Prokon operates 54 wind projects in Germany and 318 facilities in Poland.
The firm has more than 170 wind energy developments lined up in Germany, Poland and Finland, all of which can generate around 4,200MW of energy.
Prokon had filed for insolvency on 22 January 2014 due to illiquidity and excessive indebtedness.
Creditors for the firm are expected to discuss and vote for the options in July this year, following which Prokon might either be sold or liquidated.
EnBW’s proposal for acquisition is in line with its strategy for 2020, according to which the firm seeks to expand its renewable portfolio as Germany pushes for energy generation from renewable sources.
The deal will also help EnBW to move from loss-making coal and gas-based power plant to renewable sources, Reuters reported.
EnBW CEO Frank Mastiaux said: "As part of our ‘EnBW 2020’ strategy, we want to expand our business in renewable energies more than three-fold and make it one of the main pillars of the future EnBW.
"The acquisition of Prokon would bring EnBW a significant step closer to achieving this goal."
EnBW is looking to invest €3.5bn to double its renewable power generation capacity by the end of the decade, which will account for 40% of its power portfolio.
Frank Mastiaux said: "We are firmly convinced that EnBW offers the best platform to further develop the long-standing experience and expertise held by Prokon in the wind energy sector and to optimally develop the wind farm portfolio itself over the long term.
"The strengths of both companies complement each other perfectly."
Image: EnBW’s Baltic 1 is the first commercial offshore wind farm of Germany in the Baltic Sea. Photo: courtesy of EnBW Energie Baden-Württemberg AG.