Prime Capital closes second large-scale onshore wind transaction in the Nordics
Prime Capital AG, the independent asset management firm and financial services provider, has closed a 254 MW onshore wind project in Sweden.
The project, realised in close collaboration with Siemens Gamesa Renewable Energy (SGRE), was acquired by a consortium of Korean institutional investors, Siemens Financial Services and German Pension Fund Nordrheinische Ärzteversorgung, from Holmen AB, one of Sweden’s largest forest owners. Prime Capital structured and commercialised the project and will build and manage it on behalf of the consortium.
The wind energy project called “Stavro” is located in the northern part of Sweden, northwest of Umeå, and divided into two sub-sites: Blodrotberget with 40 turbines and Blackfjället with 22 turbines. The Balance of Plant construction is led by YIT, Finland’s largest construction company with significant activities in wind, and was kicked off in March of this year. Project Stavro is expected to be operational by the fourth quarter of 2021 and will be covered by a 30-year service agreement with SGRE.
Prime Capital’s experienced renewable energy team has already invested in wind, solar PV and hydro assets across 7 European countries with a combined capacity of approx. 849 MW, of which over 80 per cent in greenfield projects, and an enterprise value of approx. EUR1.1 billion. Stavro is already the second large scale (over 250MW) transaction of this kind that Prime Capital commercialises and builds in the last two years, and is representative of a strategy it will launch in a fund format in the first half of next year.
Prime Capital CEO Andreas Kalusche says: “Renewable energies have become a mature segment of the infrastructure sector with a proven track-record and we see more and more investors increasing their allocations. It is our declared goal to act as a gateway for German and international investors in achieving above market returns in this sector, while at the same time increasing their allocation to impact investments.”
Dr Mathias Bimberg, Head of Infrastructure, adds: “Scandinavian wind is at the core of our current renewable energy strategy, as we can leverage on both a unique competitive advantage in realising projects and very favourable market conditions for investing. Our close collaboration with SGRE, has enabled us to source the project early and to add value through a full-scope commercialisation process. This strategy, in a market benefitting from one of the world’s best wind resources and the ability to realise large-scale projects, increases overall profitability and risk-adjusted returns for our investors.”
Stavro will sell its production through two complementary corporate PPAs. One with Google, is part of a larger package signed by Google in Sweden and Finland earlier this year, which will ensure that almost all energy consumption to the Google Data Center in Hamina is from renewable energy sources. The other, signed with Holmen AB, will supply Holmen’s paper and board business with clean energy. The project will be financed by German DekaBank.