The portfolio comprises three wind farms in Lower Saxony and Saxony-Anhalt, Germany, with a total installed capacity of 38MW and estimated production of over 76,500MW per year.

Electricity produced by the farms is sold to subsidiaries of E.ON and RWE under the German Renewable Energy Services Act (EEG), which provides for a minimum 20-year sales contract at a fixed price, the company said.

With a total value of A$63.2 million to Viridis, the investment will also leave the company with an existing debt of A$44.5 million, Viridis Energy Capital said.

“VCEG’s investment in the Merinda wind farm portfolio further demonstrates our ability to source and implement investments in superior clean energy assets with high-quality counter parties,” Viridis CEO Edward Northam said.

“The investment has an attractive return profile, strong yield and high revenue certainty in a market with well-established legislated support for the industry.”

VCEG intends to fund the investment through an acquisition financing facility through the Investec banking group.

Subject to conditions, Viridis expects the purchase will be completed by the first quarter of 2006.

Viridis has an international focus in electricity generation. Before this latest deal, it had stakes in German and Scottish wind farms and US landfill power generation projects with a total capacity of 137MW (VCEG share 121MW).

Viridis listed in September, aiming to capitalise on growing world demand for renewable energy generation.