Prime Capital’s Renewables Fund makes large investment in Sweden
Prime Capital, an independent asset manager and financial services provider managing EUR17.7 billion across multiple funds, has closed its first investment from its newly launched Prime Green Energy Infrastructure Fund (PGEIF).
Project Björnberget in central Sweden is one of the largest onshore wind projects to start construction in Europe this year and was developed by RES, the world’s largest independent renewable energy company focused on the development, construction and operation of renewable assets. Prime Capital optimised the project with cutting-edge technology from Siemens Gamesa Renewable Energy (SGRE) and brought in co-investor Enlight Renewable Energy (Enlight), a Tel-Aviv-listed independent power producer, with over 1.4 GW under operation and construction. The project is expected to reach commercial operation at the beginning of 2023 and produce circa 1.1 TWh of clean electricity annually.
The project is another blue print transaction for Prime Capital’s value-add strategy of securing assets in the early stages and commercialising them to achieve attractive risk-adjusted returns. It will be built with Siemens Gamesa’s latest technology, the SG 5.8-170, operating at 6.2 MW, which - combined with the largest rotor in the onshore segment - maximises production for the site and minimises cost of energy. RES will provide the balance of plant for the project, and the commercial and technical management during the operating phase.
PGEIF focuses on wind-powered energy assets in the Nordic countries, with no reliance on government support and with the lowest levellised cost of electricity in Europe. Prime Capital is in exclusive negotiations with a global technology company to sign a 10-12 year power purchase agreement (PPA), off-taking roughly half of the project’s electricity production.
“With project Björnberget, Prime Capital’s renewable energy portfolio in the Nordics will soar to over 1 GW, making us the second largest investor in the region. We are delighted to bring Enlight on-board, as a very experienced partner, as well as about Enlight’s additional commitment to the Fund: it is a testament to the Fund’s strategy and the attractiveness of the projects we have in the pipeline”, says Dr Mathias Bimberg, Head of Infrastructure at Prime Capital.
Advising Prime Capital on the deal were DLA Piper on the legal side, TÜV SÜD on the technical side and PWC on tax and structuring.