Greencoat Renewables makes first Sweden wind acquisition

Greencoat Renewables announced the acquisition of the 101.1MW wind farm in Norrbotten County, Sweden from Enercon on Friday.

The AIM-traded firm said the Ersträsk South wind farm consists of 26 Enercon E103 and 10 Enercon E126 turbines, and was fully commissioned in January.

It said Enercon would continue to provide long-term operations and maintenance services.

The acquisition was Greencoat Renewables' first transaction in Sweden, expanding its operating presence in the Nordics, which it said benefitted from the ability to develop renewable energy projects on an unsubsidised basis.

It said Ersträsk South formed part of a large emerging cluster of renewable generation in the Markbygden area, with a potential installed capacity of 4GW.

Currently, the wind farm was contracted as a merchant asset exporting electricity into Nordpool but has the flexibility in the future to contract the electricity produced via a corporate PPA.

The acquisition would be financed by a drawdown from the company's existing revolving credit facility.

Following the acquisition and after the closing of its recent fundraise, Greencoat said its total borrowings would represent 40% of gross asset value.

“Securing our first asset in Sweden and expanding our presence in the Nordics is a significant milestone for Greencoat,” said Greencoat Capital partnerPaul O'Donnell.

“Sweden is becoming a major hub for green energy, with the combination of low-cost generation, significant capacity in development, and a number of attractive routes to market including access to Nordpool and a rapidly developing corporate PPA market.

“We are delighted to secure such a high-quality asset from Enercon and are well-positioned to take advantage of future opportunities in the market.”