Greencoat Renewables buys 101 MW wind farm in Sweden
October 22 (Renewables Now) – Dublin-based Greencoat Renewables PLC (LON: GRP) has acquired a 101.1 MW wind farm in Sweden from the German wind power manufacturer Enercon GmbH.
The deal, Greencoat Renewables’ first acquisition in Sweden, brings the company’s installed capacity to 787 MW, Greencoat Capital LLP – managed investors in renewable infrastructure said today.
The Erstrask South wind farm, which was commissioned in January this year, consists of 26 Enercon E103 and 10 Enercon E126 turbines. It is currently contracted as a trading asset that exports power to Nordpool but may sign a corporate power purchase agreement (PPA) in the future.
The wind farm is located in Norrbotten County and is part of an emerging renewable cluster in Markbygden with a potential capacity of 4 GW.
“Sweden is becoming a major hub for green energy, with the combination of low-cost production, significant capacity under development and a number of attractive routes to the market, including access to Nordpool and a fast-growing corporate PPA market,” says Paul O ‘Donnell, partner at Greencoat Capital.
The price of the acquisition was not announced. Greencoat Renewables will pay for it by using its existing revolving credit facility. Following the acquisition and closure of the company’s latest fundraiser, Greencoat Renewables’ total borrowing will be 40% of the gross asset value.
This week, the company raised EUR 165 million (USD 192 million) from its initial placement during a 12-month share issue program. The issue requires the shareholders’ approval.
(1 EUR = 1 164 USD)