Greencoat Renewables Announces First Transaction In Nordic Market
Greencoat Renewables PLC, the renewable infrastructure company invested in euro-denominated assets, is pleased to announce the agreement to acquire Kokkoneva wind farm from Abo wind, a global renewable energy project developer, for a consideration of approximately €60 million.
The 43.2MW asset is currently under construction in Siikalatva, Finland, with commencement of commercial operations expected in Q2 2022. The transaction is structured under a forward sale model and will only complete once Kokkoneva is fully operational.
The agreement is in line with Greencoat Renewables' European expansion strategy and follows the acquisition of a portfolio of three French wind farms in summer 2020. The Finnish wind market is well-established and characterised by high wind speeds, large capacity turbines, and a correspondingly low cost of electricity generation.
Kokkoneva is a subsidy-free wind farm and has entered a 10-year fixed-price Corporate PPA with Gasum, Finland's state-owned gas utility for the majority of the electricity generated.
The wind farm will use nine Nordex N149 4.8MW turbines and will benefit from a 15-year O&M contract with Nordex. Abo wind will finance and manage the construction of the wind farm and will continue to provide operational management services for the wind farm once operational.
Paul O'Donnell, Partner at Greencoat Capital, the Investment Manager, said:
“The combination of low-cost renewable energy, and a well-developed Corporate PPA market make the Nordics a very attractive target for renewable energy investment. We're delighted to secure such a high-quality asset from Abo wind, and have sight of further value-accretive opportunities in Finland and the rest of the Nordic region.
As the renewable generation market continues to develop, we expect to see greater opportunity in forward-sale and corporate PPA models and believe Greencoat Renewables is well positioned to benefit both in Europe and in Ireland.”
