Sunflower locks in prices in Poland: New power agreement to generate approximately PLN 121 million

The renewable energy company secures electricity output sales from its wind farms in Poland for 2027–2028 at an average price 13.5% higher than previous agreements, strengthening its future revenue stream from the European market.

Sunflower Sustainable Investments reported entering into a power purchase agreement (PPA) in Poland with local energy giant Energa Orbat. The agreement, for 2027–2028, is expected to generate revenues of approximately PLN 121 million (approx. ₪110 million) at an average price 13.5% higher than previous agreements.

Sunflower Sustainable Investments (TASE: SUNF) announced today that it entered into a binding offer for the sale of electricity in Poland, which will secure revenues of approximately PLN 121 million (approx. ₪110 million) in 2027 and 2028. The agreement was signed through subsidiaries holding a wind farm portfolio with a total capacity of approximately 50 MW in the country, representing a significant step in solidifying the company's operations in the European energy market.

The engagement was executed with Energa Orbat, one of Poland's largest energy companies, and covers the full electricity output generated by Sunflower's wind farm portfolio during the two specified years. According to the filing, the fixed price set for the sale of electricity stands at PLN 495 per megawatt-hour (MWh) in 2027, and PLN 435 per MWh in 2028. The average price for these two years, PLN 465 per MWh, reflects an increase of approximately 13.5% compared to the average price in the company's previous agreements for 2025–2026, which stood at PLN 410.

One of the prominent features of the agreement is its structure, defined as 'Pay as Produced'. Under this format, Sunflower's project entities are not obligated to a minimum production volume, reducing the operational risk associated with reliance on weather conditions and turbine availability. Furthermore, the filing indicates that the engagement is not subject to precedent conditions and does not require the company to provide collateral or guarantees, demonstrating the buyer's confidence in the projects and their power generation capability.

Sunflower estimates that revenues from the agreement, based on an output forecast relying on average production data from 2023–2025, will total approximately PLN 121 million for both delivery years. The company emphasizes that this is forward-looking information whose materialization depends on factors beyond its control, such as actual electricity generated and potential regulatory changes in Poland. Signing of the definitive power purchase agreement (PPA) is expected before the expiration of the current power sale agreement.