The Taaleri SolarWind 3 Fund, Taaleri Energia’s sixth renewable energy fund, has held a second closing, with €430m in commitments.
The fund has a target size of €600m and a hard cap of €900m.
It will remain open for new commitments until at least December 2024.
The fund’s investors include the European Bank for Reconstruction and Development, the European Investment Fund, KBC Verzekeringen (in partnership with EIF), Varma Mutual Pension Insurance Company, Taaleri and the Taaleri Energia team. Finnish pension funds, foundations, endowments, family offices and individual investors are also strong supporters of the fund, investing through a fund managed by Aktia Bank.
The Taaleri SolarWind 3 Fund is classified as an Article 9 “Dark Green” Fund, the highest sustainability category under the EU Sustainable Finance Disclosure Regulation.
Its investment strategy is to acquire, develop, contract, construct, operate and exit a portfolio of utility-scale onshore wind farms, PV solar parks and battery energy storage assets across the fund’s target markets – the Nordics & Baltics (c.50%), Poland & Southeast Europe (c.25%), Spain (c.15%) and Texas (c.10%).
It is targeting a conservative base case net IRR return of 10%, with an upside case of 14%-plus, over its 10-year term. It is expected that the Fund will offer substantial co-investment opportunities to Fund investors.
The fund was seeded with a portfolio of 50 renewable energy development projects, which was assembled by the Taaleri Energia team during the 18 months prior to its first close.
The fund has continued to selectively acquire additional development projects across its target markets and now owns 61 development projects, representing 5.9GW in net generation capacity, and approximately four times as many projects as the fund needs to construct to be fully deployed.
The team, together with its development partners, will manage the development of these projects and prepare them for construction whilst maximising their value. The fund has already started construction on a battery energy storage asset in Finland, and it is expected it will proceed to construction on another three to four investments during 2024.
“The SolarWind 3 Fund strategy follows on from the success of the SolarWind II Fund,” said Taaleri Energia managing director Kai Rintala.
“We are operating in the same target markets, working together with the same strategic partners, but starting with a large portfolio of development projects.
“The demand for renewable energy projects across our target markets has increased significantly over recent years. By securing development projects early, we have been able to capture considerable potential future value for the SolarWind 3 Fund and its investors.”
Head of investor relations at Taaleri Energia Stephen Ross added: “The SolarWind 3 Fund’s investments will have significant and sustainable positive impacts in the communities and countries where they are located.
“The renewable energy power and storage plants that the Fund will construct will generate green electricity for around 1.3m households, offset an estimated 2.3m tonnes of CO2 emissions, reduce air pollution, improve grid infrastructure, create local employment, generate local and state tax revenues and increase energy security.”