Greencoat Renewables acquires the first wind farm in Sweden
The Dublin-listed wind energy investor Greencoat Renewables has acquired a wind farm in Sweden in what is its first transaction in the Scandinavian country.
The 101.1 megawatt Ersträsk South wind farm in Norrbotten County has been acquired by Enercon, which will continue to provide long-term operation and maintenance services.
The farm consists of 26 Enercon E103 and 10 Enercon E126 turbines and was put into operation in January 2021.
The acquisition is Greencoat Renewables’ first transaction in Sweden, which expands the company’s operational presence in the Nordic region, which benefits from the opportunity to develop projects for renewable energy on an unsubsidized basis.
Ersträsk South is part of a large emerging cluster of renewable production in Markbygden, with a potential installed capacity of 4 gigawatts.
The wind farm is currently contracted as a commercial asset that exports electricity to Nordpool, but has the flexibility to contract the electricity produced in the future via a company agreement on electricity purchases.
The acquisition will be financed through a withdrawal from the company’s existing revolving credit facility. Following the acquisition and the completion of the most recent acquisition, Greencoat Renewables’ total borrowing will represent 40 percent of its gross asset value.
Paul O’Donnell, partner at Greencoat Capital, said: “Securing our first asset in Sweden and expanding our presence in the Nordic region is an important milestone for Greencoat.
“Sweden is becoming a major hub for green energy, with the combination of low-cost production, significant capacity in development and a number of attractive routes to the market, including access to Nordpool and a rapidly growing corporate PPA market.
“We are pleased to secure such a high-quality asset from Enercon and are well positioned to take advantage of future market opportunities.”