Nordic Investment Bank (NIB) has committed a €50m loan for the construction of the 277MW Kölvallen Vind project in Ljusdal, Sweden.
The 4.5-year loan will finance the construction and installation of 42 wind turbines as well as associated civil and electrical infrastructure.
The Kölvallen wind park, majority owned by Foresight Energy Infrastructure Partners, is expected to commence commercial operations in February 2025.
The project is estimated to increase wind production in the SE2 electricity price area by 7.8%, and the total power production by 1.6%.
“The current energy crisis underlines an ever-increasing need to invest in cost-efficient renewable energy production.
“The Kölvallen wind farm is a clear-cut example of how targeted investments can contribute to a more secure and sustainable energy supply in our region,” said André Küüsvek, NIB President and CEO.
The construction is in line with the EU taxonomy and Sweden’s strategic goals to become a net zero carbon economy by 2045.
The project has been developed by Arise, a Swedish renewable energy developer with a project pipeline of over 2.3GW.
As of July 2022, 91% of the project has been acquired by Foresight Energy Infrastructure Partners (FEIP), Foresight Group’s flagship energy transition fund.
“We are delighted to be working with NIB on this milestone project.
“The Kölvallen wind farm will make a significant contribution to the region’s decarbonisation targets and as demand for secure energy grows, exacerbated by ongoing geopolitical events, FEIP is well positioned to support the build-out of Europe’s low-carbon energy system,” said Theodora Forbes, Senior Investment Manager at Foresight.