Jade Power Trust has completed the sale of its Vistea (Suha) hydro project in Romania.
As provided in the trust’s public filings, Suha ceased operations in the second quarter of 2018 and has been classified as a discontinued operation for the purposes of financial statements. The purchase price for the sale is an amount equal to 20% of the annual free cash, if any, generated by the hydro project for a period of five years.
The original generating capacity of this facility was not released, and the name of the buyer was not disclosed.
“We are pleased to have disposed of the Suha hydro project as it has been a money losing operation and a cash and management drain for almost two years,” said J. Colter Eadie, chief executive officer of Jade Power. “The savings will be better utilized in the Trust’s ongoing operations and allows us to better focus management time on positive cash flow and revenue generating assets with long-term upside.”
The trust was formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow and a suitable risk-adjusted return on investment. The trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power.
The company also owns the 2.5-MW Rott hydroelectric project, which it purchased on a fully commissioned and operational basis in 2014. This cascade of two run-of-river generating plants is located on the Little Cugir River, about 58 km west of Sibiu in the Şureanu Mountains of Romania’s Parâng Range. Rott is subject to long-term offtake agreements for all its energy production and Green Certificates earned until 2028.