The Renewables Infrastructure Group (TRIG) has exchanged contracts to acquire a 50% interest in two pre-construction wind projects in Sweden totalling 242MW.
The Ranasjo and Salsjo projects are located in central Sweden and together are referred to as Twin Peaks.
The acquisition is subject to certain conditions being satisfied, including entering into final agreements for the construction of the wind farms.
The transaction is expected to complete by July 2021.
TRIG has partnered with InfraRed European Infrastructure Income Fund 4 which will acquire a 50% interest in the project alongside TRIG, which is consistent with TRIG’s strategy of partnering with aligned co-investors on larger transactions whilst maintaining a diversified portfolio.
The asset has been sourced bilaterally building on InfraRed’s existing relationship with Arise, a developer of projects in the Nordics and UK from whom TRIG acquired the 213MW Jadraas wind farm in 2019.
The projects are being funded on an ungeared basis.
The wind farms, which are approximately 20 km apart and share grid and access infrastructure, are located in central Sweden, near Solleftea and about 100km from Ostersund, in the SE2 Nord Pool price area.
Construction is expected to commence in the third quarter of 2021 and to be completed in the first half of 2024, with each wind farm using Siemens Gamesa 170 6.2MW turbines.
Siemens Gamesa will service the wind farms under a 30-year agreement.
The Ranasjo project will comprise 25 turbines whilst the Salsjo project will comprise 14 turbines.
Arise will provide the asset management services with RES providing oversight through the owner’s engineer role during construction.
TRIG has total commitments of approximately £200m including Twin Peaks due over the next three years to fund construction phase projects.
TRIG chairman Helen Mahy said: “The Nordics is a key region for our diversified portfolio and we’re pleased to continue our relationship with Arise.
“We firmly believe developing and leveraging relationships through our managers is crucial in an increasingly competitive market for renewables, whilst partnering with aligned co-investors enhances our access to attractive opportunities.”