PSW Rönkhausen: HKCF acted as M&A and Debt Advisor to Mark-E

Future Secured: Mark-E’s Rönkhausen Pumped-Storage Power Plant – Refurbishment and Continued Operation Through Strategic Partnership

• STAWAG joins as strategic partner – operations remain with Mark-E
• Refurbishment and overhaul costs in 2018 total €25 million
• Energy transition: PSW balances supply and demand

Mark-E Aktiengesellschaft (Mark-E) will continue operating its pumped-storage power plant (PSW) in Finnentrop-Rönkhausen beyond 2018. The necessary refurbishment will be carried out in partnership with a strategic investor under an ownership/lease model. The Stadtwerke Aachen AG (STAWAG) has been secured as a partner for this project. Under the terms of the agreement, operational management and marketing of the plant will remain with Mark-E through at least 2030.

To ensure safe and economically viable long-term operation, extensive refurbishment and technical overhauls will be undertaken in 2018. Additionally, an expansion of the plant’s storage capacity is planned. The total investment volume amounts to approximately €25 million, which will be provided through a dedicated project financing structure. Since March 27, 2015, Mark-E has held an updated water law permit for the PSW, valid through March 31, 2045. In anticipation of the planned refurbishment of the upper reservoir, the Arnsberg District Government granted a deadline extension in 2016, allowing work to proceed until mid-2018.

Following approvals by the supervisory boards of the involved companies, the municipal shareholders’ councils passed resolutions in December 2017. The implementation of the model is subject to review and approval by the municipal oversight authorities and the Federal Cartel Office.

Background – The Pumped-Storage Power Plant (PSW)
The PSW in Finnentrop-Rönkhausen has been in operation since 1969, with a generating capacity of 140 megawatts (MW). It is one of only two pumped-storage plants in North Rhine-Westphalia. The upper reservoir is situated on the Dahlberg at an elevation of 570 meters above sea level, while the lower reservoir lies 270 meters below in the valley. Excess electricity is used to pump water to the upper reservoir. When electricity is needed, the water is released via turbines to generate power—providing a flexible response to fluctuations in electricity demand and the variable output of solar and wind energy. Pumped-storage plants are currently the most cost-effective technology for large-scale indirect energy storage and are expected to continue playing a key role in the successful implementation of the energy transition.

Source: Mark-E