Greencoat Renewables acquires first wind farm in Sweden

  • Oct 23, 2021
  • Irish Times

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 the Norrbotten County has been purchased from Enercon, which will continue to provide long term operations and maintenance services.

The farm consists of 26 Enercon E103 and 10 Enercon E126 turbines and was fully commissioned in January 2021.

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

Ersträsk South forms part of a large emerging cluster of renewable generation in the Markbygden area, with a potential installed capacity of 4 gigawatts.

Currently the wind farm is contracted as a merchant asset exporting electricity into Nordpool but has the flexibility in the future to contract the electricity produced via a corporate power purchase agreement.

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

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

“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.

“We are delighted to secure such a high-quality asset from Enercon and are well-positioned to take advantage of future opportunities in the market.”