Newly-formed Finnish renewables investor Exilion Tuuli Ky has acquired its first three projects in its home market as part of plans to invest €300m in clean power.
The new company has been formed by Exilion Management Oy, an investment company owned by Finnish employee pension companies.
It was founded on the basis of the former TuuliTapiola Ky, which was managed by LahiTapiola, the company said.
Exilion Tuuli Ky will be owned by the Elo Mutual Pension Insurance Company, as well as Veritas Pension Insurance Company and the State Pension Fund of Finland.
The first three projects are wind farms with a combined investment value of €90m, said Exilion Tuuli Ky.
They are the seven-turbine 21MW TuuliMuukko project in Joutseno, the nine-turbine 24.3MW Vartinoja 1 facility in Siikajoki and the six-turbine 18MW Latamaki plant in Luhanka.
TuuliMuukko has been operational since 2013 and Vartinoja 1 since 2015, with both previously owned by TuuliTapiola. Latamaki has generated power since 2014.
Exilion Tuuli Ky investment manager Pasi Valasjarvi said the company is also searching for further wind power investments, as well as other renewable generation in Finland, such as solar and energy storage, that are either operational or under construction.
He added: “Wind power is not our sole interest. We are also keeping a keen eye on the opportunities provided by solar energy and energy storage, for example.
“For now, however, wind power is the most competitive option compared to other forms of energy in terms of expected returns.”
Elo portfolio manager Jan Schulman said: “Investments into renewable energy production form a central part of Elo’s investment operations.
“Combining the efforts of three institutional investors provides all of us with better opportunities to increase investments in wind power and develop operations to be more goal-oriented and competitive.”
VER Portfolio Manager Jussi Hakkinen said: “VER sees domestic renewable energy as a tempting long-term investment due to the predictable cash flow and diversification benefits it will provide.
“This is an investment in sustainable development and clean energy production, which will serve VER’s goals from a responsibility viewpoint as well.”
Veritas chief investment Niina Bergring said: “Investing in renewable energy is very interesting not only from the return point of view but also due to diversification and sustainability aspects. That is why it is compatible with pension investors’ goals.”
Exilion is known for its real estate investments, and manages a new hotel to be built in the Helsinki central railway station and the Hansakortteli in the centre of Turku.