Press release
Halmstad, May 19 2010
Arise Windpower signs 10-year co-operation agreement with E.ON Elnät
Arise Windpower AB (Arise) and E.ON Elnät Sverige AB (E.ON) have signed a
10-year co-operation agreement covering the electrical connection of the wind
farms planned by Arise within E.ON's area in southern Sweden. In connection
thereto, Arise will hand over its grid station and applicable concession in
Knäred to E.ON for a final account of SEK 87.8m.
Peter Nygren, CEO of Arise: ”The expanded collaboration with E.ON means that the
electrical connection of the planned new wind farms will occur more rapidly and
more cost efficiently. We can therefore increase the profitability of parks
located within E.ON's area. By handing over the grid station, we free up capital
but retain our integrated grid organisation - and therefore the capacity to
continue designing and constructing new electricity grids with a high level of
cost and quality control. We are very pleased with the agreement and our
collaboration with E.ON. ”
Per-Olof Lindholm, CEO of E.ON Elnät Sverige AB: ”E.ON's goal is to simplify
things as much as possible for wind power. As Sweden's leading grid company, we
have both the experience and the resources to make cost efficient connections
for promoters. The agreement with Arise should be viewed from this perspective.”
The collaboration with E.ON will reduce electricity distribution costs and will
have a long-term positive impact on Arise's cash flow. The agreement is expected
to have a positive impact on earnings of SEK 5.2m this year (including a
non-recurring effect of SEK 3.8m) and a positive impact on cash flow of SEK
25.8m during the second quarter of 2010. The agreement is contingent upon the
approval of the Energy Markets Inspectorate.
Halmstad, 19 May 2010
ARISE WINDPOWER AB (publ)
This information is such that Arise Windpower AB (publ) is required to disclose
under the Securities Market Act and/or the Financial Instruments Trading Act.
The information was submitted for publication on May 19 2010 at 07.30 AM.
For further information, please contact
Peter Nygren, CEO of Arise Windpower
AB
+ 46 706 300 680
Per-Olof Lindholm, CEO of E.ON Elnät Sverige AB
+ 46 705 259296
About Arise Windpower
Arise Windpower is one of Sweden's leading land-based wind power companies.
Arise Windpower's business concept is to sell electricity produced by its own
land-based wind turbines in southern Sweden. The company's goal is to commission
approximately 300 wind turbines by 2014 which will produce around 2 TWh of
environmentally friendly electricity per year. Arise Windpower is listed on
NASDAQ OMX Stockholm.
Arise Windpower AB (publ), Box 808, SE-301 18 Halmstad, tel. +46 35 20 20 900,
org.nr. 556274-6726
E-mail: info@arisewindpower.se, www.arisewindpower.se
