Nelja Energia

Nelja Energia AS, also known by the 4Energia brand, was an Estonian renewable-energy development and power-generation company headquartered in Tallinn. Its activities centered on building and operating renewable-energy infrastructure in Estonia, Latvia and Lithuania. The name Nelja Energia means “Energy of Four” and refers to the four renewable-energy sources associated with the business: wind, water, biomass and solar. The company operated from 2005 and initially served as an operating company for wind-farm assets associated with Vardar Eurus and Freenergy. Vardar Eurus was owned by Norway’s Vardar AS and the Nordic Environment Finance Corporation, while Freenergy was backed by Estonian private investors and the European Bank for Reconstruction and Development. The two shareholder groups initially held Nelja Energia equally. In 2012, Freenergy merged with Nelja Energia, after which Vardar Eurus became the controlling shareholder with 77 percent and Estonian private investors held the remaining 23 percent. Nelja Energia’s principal business was the development of renewable-generation capacity and the operation of completed power plants. In Estonia, it owned and operated eleven wind farms with an aggregate capacity of 140.8 MW. In Lithuania, it operated four wind farms with a combined capacity of 78.9 MW. The company also operated two biogas-fuelled combined heat-and-power plants in Estonia. In Latvia, its activities included a cogeneration plant and a pellet factory in Brocēni, broadening its business beyond wind power into bioenergy and solid-biomass processing. A major development ambition was a proposed offshore wind farm in the waters off Hiiumaa, Estonia. The planned project was described as having a potential capacity of approximately 700–1,100 MW, making it substantially larger than the company’s operating onshore portfolio. The proposal reflected Nelja Energia’s strategic emphasis on expanding Baltic renewable generation and developing larger-scale wind resources. Nelja Energia ceased to operate as an independent company after Eesti Energia’s renewable-energy subsidiary Enefit Green agreed to acquire all of its shares. The transaction, announced on 29 May 2018, valued the equity at €289 million and included the assumption of €204 million in Nelja Energia loans. Regulatory approval and completion took place in November 2018. After the transaction, Nelja Energia became part of the Enefit Green business, and its independent corporate identity and status as a standalone operator effectively ended.

Nelja Energia began operating in 2005 as a company supporting wind farms connected with two investor groups. One was Vardar Eurus, owned by Norwegian utility and energy-investment company Vardar AS together with the Nordic Environment Finance Corporation. The other was Freenergy, backed by Estonian private investors and the European Bank for Reconstruction and Development. The two groups initially owned Nelja Energia equally, giving the company a mixed Norwegian, international-finance and Estonian investment base. The company’s early role developed into a broader renewable-energy platform. Rather than concentrating only on project development, Nelja Energia combined the construction and development of renewable assets with the long-term operation of generating facilities. Wind energy became its principal technology. Over time, its portfolio expanded across the Baltic states, supporting the development of renewable electricity generation in Estonia and Lithuania and related energy infrastructure in Latvia. A corporate restructuring took place in 2012, when Freenergy merged with Nelja Energia. Following the merger, Vardar Eurus held 77 percent of the company and Estonian private investors retained 23 percent. This ownership structure accompanied a period in which Nelja Energia expanded its operating portfolio and pursued a larger regional role in renewable energy. By the time of its acquisition, Nelja Energia owned and operated eleven wind farms in Estonia with total capacity of 140.8 MW and four wind farms in Lithuania with total capacity of 78.9 MW. It also operated two biogas-fuelled cogeneration plants in Estonia. In Latvia, the company owned and operated a cogeneration plant and a pellet factory in Brocēni. These assets reflected the breadth implied by the company’s name: wind was the dominant business, while biogas, cogeneration and biomass provided additional forms of renewable or lower-carbon energy activity. Nelja Energia also pursued development opportunities beyond its operating assets. Its most ambitious proposal was an offshore wind farm off Hiiumaa in Estonia, with a projected capacity range of 700–1,100 MW. The project represented a possible step change in scale compared with the company’s onshore wind portfolio and aligned with the wider development of Baltic offshore wind resources. On 29 May 2018, Enefit Green, a subsidiary of Eesti Energia, announced that it would acquire 100 percent of Nelja Energia. The announced consideration for the shares was €289 million, while Enefit Green also agreed to take over €204 million of company loans. Following approval, the transaction was completed in November 2018. Nelja Energia thereafter became part of Enefit Green, and the standalone Nelja Energia brand and corporate entity ceased to have an independent operating role.

• 2018

  Enefit Green acquisition announced

  [1]Nelja Energiaen.wikipedia.org

  Enefit Green announces an agreement to acquire all Nelja Energia shares for €289 million and assume €204 million of loans.

• 2018

  Acquisition completed

  [1]Nelja Energiaen.wikipedia.org

  The Enefit Green transaction is approved and completed in November, integrating Nelja Energia into Eesti Energia’s renewable-energy business.

• 2012

  Freenergy merger and ownership restructuring

  [1]Nelja Energiaen.wikipedia.org

  Freenergy merges with Nelja Energia. Vardar Eurus becomes the 77 percent shareholder, while Estonian private investors retain 23 percent.

• 2005

  Operations begin

  [1]Nelja Energiaen.wikipedia.org

  Nelja Energia begins operating as an operator for wind-farm assets associated with Vardar Eurus and Freenergy.

A Baltic renewable-energy developer and asset operator with a portfolio spanning wind power, biogas, cogeneration and biomass-related activities.

• Onshore wind generation

  Estonian wind farms

  Nelja Energia owned and operated eleven wind farms in Estonia with a combined stated capacity of 140.8 MW. This portfolio formed the core of the company’s power-generation business and made onshore wind its leading technology in the Baltic region.

• Onshore wind generation

  Lithuanian wind farms

  The company operated four wind farms in Lithuania with an aggregate capacity of 78.9 MW. These facilities extended Nelja Energia’s operating footprint beyond Estonia and supported its strategy of developing renewable generation across the Baltic countries.

• Biogas combined heat and power

  Biogas cogeneration plants

  Nelja Energia operated two biogas-fuelled cogeneration plants in Estonia. The facilities complemented the company’s wind portfolio by producing energy from biogas and using cogeneration technology rather than relying exclusively on intermittent wind generation.

• Biomass energy and pellet production

  Brocēni cogeneration and pellet operations

  In Brocēni, Latvia, Nelja Energia owned and operated a cogeneration plant and a pellet factory. Together, these activities represented the company’s biomass-related business and gave it an industrial presence alongside its electricity-generation assets.

• Offshore wind development

  Hiiumaa offshore wind-farm proposal

  Nelja Energia planned a large offshore wind farm off Hiiumaa, Estonia. The proposal was described as having potential capacity of approximately 700–1,100 MW, substantially exceeding the scale of the company’s existing onshore portfolio.

• 2018

  Sale to Enefit GreenM&A

  Background

  Enefit Green, the renewable-energy subsidiary of Eesti Energia, sought to acquire the Baltic renewable-energy platform and its operating assets.

  Action taken

  The parties agreed to the acquisition of 100 percent of Nelja Energia shares for €289 million, with Enefit Green also taking over €204 million in loans.

  Aftermath

  The transaction was approved and completed in November 2018. Nelja Energia was integrated into Enefit Green and no longer operated as an independent company.

  Share purchase consideration and assumed loans. €289 million share consideration and €204 million of loans assumed (2018 transaction)

  Source

1. 1Nelja Energiaen.wikipedia.org