NZ Windfarms Limited (NZX: NWF) Agrees a New VVFPA for Q1 2022 to Q3 2022

Monday 12th April 2021

NZ Windfarms Limited is pleased to announce it has agreed the terms of its third Variable Volume Fixed Price Agreement (VVFPA) for 100% of its production from 1 January 2022 to 30 September 2022. An existing agreement is already in place for production before 1 January 2022.

Commercial terms are confidential. The price achieved is reflective of forward electricity prices on the transaction date. The ASX futures price for the relevant period is adjusted lower to factor in both the nodal prices (the difference in forward electricity price between Otahuhu and Tararua) and intermittent wind generation. This approach is normal and is based on long term experience and past contracts. It also reflects the current elevated ASX futures curve which is a positive increase for revenue.

NWF’s Chairman, John Southworth, said he was pleased with the level of interest in the VVFPA renewal process with multiple parties submitting bids over varying tenures. Mr Southworth said the New Zealand market has matured with respect to these types of contracts and expects them to become common place going forward and encourages large users of electricity particularly with large carbon footprints to engage.

FY2022 EBITDAF Guidance Range

The Board notes that revenue (net of hedging) will be materially higher in FY2022 than the current year, However FY2022 EBITDAF guidance range will only be provided to the market once the budget has been approved by the Board. This is expected to be within the next three months and is normal for our business.

Please see the link below for details:

VVFPA Renewal NZX Announcement

Source: NZ Windfarms Limited

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