UK-based investor The Renewables Infrastructure Group (TRIG) has acquired a 75% interest in a Nordic wind project from Enercon.
TRIG has acquired the majority stake in the 229.1MW Erstrask facility in Sweden.
Erstrask, currently under construction, will comprise 26 Enercon E-103 turbines each with a 2.35MW capacity in the first phase.
The second phase will use 42 Enercon E-126 turbines each with a 4MW capacity.
The first phase is expected to become operational in the first quarter of 2019 and the second phase in the first quarter of 2020.
TRIG will pay Enercon for each phase, as each one enters operation. The wind farm, which is TRIG’s first investment in Sweden, is valued at approximately €190 million.
TRIG will finance the investment from its revolving acquisition facility. No third-party debt has been required.
Renewable energy plants in Sweden receive a 15-year green certificate, but the substantial majority of revenues come from power sales.
Erstrask has already entered into hedging agreements for fixing power prices for the next two years for all of the first phase and a portion of the second phase’s expected generation.
Hedges will be used on an ongoing basis to manage exposure to power price variations.
TRIG announced in August this year that it was in advanced discussions to invest in the project.
The company invests in various renewable energy and related technologies and markets within its geographical focus of Northern Europe to spread risk. With the Erstrask wind farm, TRIG’s investments outside of the UK account for 28% of the portfolio.
Infrared Capital partners advised on the deal. Infrared director infrastructure Richard Crawford said: “Ersträsk is an important transaction for TRIG and its first investment in the Nordic region.
“This acquisition enables TRIG to further improve its geographical diversification and establish TRIG’s presence in one of Europe’s most attractive regions for renewable energy development.
“The investment fits nicely within the portfolio alongside TRIG’s other acquisitions in 2018 in France, the UK and Ireland with their strong feed-in tariff and Contracts for Difference support mechanisms”.