Dong sells Polish onshore assets for $320m

Dong has agreed to sell its Polish onshore wind business to local utilities PGE and Energa, with the Danish utility indicating that it is finished with onshore wind for the foreseeable future.

Rumours that both Dong and Iberdrola were looking to sell their Polish wind units first emerged last autumn, as Warsaw negotiates an overhaul of its renewables support strategy – a change likely to benefit PV and offshore wind at the expense of the onshore sector.

Dong will receive 1bn zloty ($320m) for 111.5MW of installed wind capacity and a 700MW development pipeline. Its 40 Polish wind employees will be transferred to PGE and Energa, which are buying separate pieces of Dong’s business.

Dong chief executive Henrik Poulsen insists the Polish projects have been “a sound investment”, but says the company will focus on the “development, construction and operation of offshore wind farms in future”.

Dong, whose credit rating has come under pressure, had previously announced plans to divest assets worth DKr10bn ($1.79bn) during 2013-2014. The Polish wind transaction is expected to result in a net pre-tax gain of up to DKr600m.

“We will thereby release capital to support our investments in, for example, offshore wind, where Dong … has a strong market position,” says Poulsen.

The deal is slated for completion by late 2013, after competition authority approvals are in hand.