Israel-based renewables developer Enlight has signed agreements to acquire, invest in and construct a 113MW wind farm in Sweden, which is ready to build.
The Picasso wind project, located in southern Sweden, will use 27 4.2MW turbines supplied by Vestas, which will also service them.
The wind farm’s financial close is expected to complete in the fourth quarter of 2019, with commercial operation expected in the first half of 2021.
Enlight has entered power purchase agreement negotiations and plans to sell half of the electricity produced by Picasso for the first 12 years under a commercial agreement, while the balance of production will be traded on the Nord Pool, Europe’s largest electricity market.
Based on the mix and the current forecasts for future electricity prices in Sweden by Poyry, electricity sales are expected to amount to €10-12m annually in the first 12 years and approximately €17-24m annually for the rest.
Enlight chief executive Gilad Yavetz said: “The signing of the deal in Sweden is part of a far-reaching strategic move by Enlight to grow its activity in developed markets, in which it is already possible to sell electricity from renewable sources at market prices and without subsidies.
“This deal joins the giant project being developed by Enlight in Spain and additional projects that the company is working on in developed markets.”
The total investment in Picasso is estimated at €135-140m and Enlight estimates equity required for the project will be 40-45% of the total investment.
The contractor for the balance of plant construction is Swedish company Svevia.
Enlight, which is active in Israel and Europe, has constructed over 130 renewable energy projects with total capacity exceeding 500MW, and is developing a pipeline, out of which over 600MW is close to reaching ready-to-build status.
Swedish branch of DLA Piper law firm advised Enlight.