| 4°C Dublin

Greencoat Renewables moves into Swedish market with purchase of wind farm

Close

The Ersträsk South wind farm in Sweden

The Ersträsk South wind farm in Sweden

The Ersträsk South wind farm in Sweden

Listed renewable infrastructure company Greencoat Renewables has purchased a 101 megawatt wind farm in Sweden from Enercon.

Details regarding the price paid for the wind farm were not publicly disclosed.

The acquisition is Greencoat Renewables’ first transaction in Sweden, expanding the company’s presence in the Nordics, “which benefits from the ability to develop renewable energy projects on an unsubsidised basis”, Greencoat said in a statement.

The Ersträsk South wind farm consists of 26 Enercon E103 and 10 Enercon E126 turbines and was fully commissioned in January this year.

Enercon will continue to provide long-term operations and maintenance services at the wind farm.

Ersträsk South forms part of a large emerging cluster of renewable generation in the Markbygden area, with a potential installed capacity of four gigawatt, Greencoat said.

The wind farm is currently contracted as a merchant asset – meaning it sells power at current prices, without any subsidies – exporting electricity into the Nordpool power exchange. It has the flexibility in the future to contract the electricity produced via a corporate power purchase agreement.

“Securing our first asset in Sweden and expanding our presence in the Nordics is a significant milestone for Greencoat,” Paul O’Donnell, partner at Greencoat Capital, the investment manager, said.

“Sweden is becoming a major hub for green energy, with the combination of low-cost generation, significant capacity in development, and a number of attractive routes to market including access to Nordpool and a rapidly developing corporate PPA market.”

The acquisition will be financed by a drawdown from Greencoat’s existing revolving credit facility. Following the acquisition and post the closing of a recent fundraise, Greencoat Renewables’ total borrowings will represent 40pc of its gross asset value.

Business Newsletter

Read the leading stories from the world of business.

This field is required

Earlier this week, Greencoat raised €165m in an oversubscribed share placing.

The funds will be used to partly pay down its revolving credit facility. In addition, Greencoat said the money will help the company further invest in assets.

Last month Greencoat said it has identified “significant” near and medium-term growth opportunities in both Ireland and Europe.

The opportunities come amid what the company said was “a supportive backdrop with renewables remaining a highly attractive asset class”.

Greencoat reported profit after tax of €22.7m in the six months to June 30, up from €13m in the corresponding period last year.


Privacy