GIG finances 235MW Swedish project

SWEDEN: The Macquarie-owned Green Investment Group (GIG) has reached financial close on a €270 million, 235MW wind farm in central Sweden.

Siemens Gamesa will maintain its 4.2MW turbines at the Överturingen site for 25 years
Siemens Gamesa will maintain its 4.2MW turbines at the Överturingen site for 25 years

The Överturingen project in the Ånge municipality will use 56 of Siemens Gamesa’s 4.2MW turbines with tip heights of 220 metres. The manufacturer will also service the turbines for 25 years.

It was developed by the GIG with forest owner and renewable energy company SCA Energy.

Construction is set to start "imminently", the GIG stated, and the project is due to be completed by December 2019.

Överturingen will be backed by a 29-year power purchase agreement (PPA) with aluminium producer Norsk Hydro, which the GIG stated is believed to be one of the longest corporate PPAs in the wind power industry.

Mark Dooley, global head of green energy for Macquarie Capital and the GIG, said: "This project is the latest to utilise a new investment model: developing new projects by working with companies who want to buy renewable energy directly.

"This model provides the secure revenues needed to finance renewable energy assets with less and less reliance on public subsidy."

Norsk Hydro had also previously agreed to buy an unspecified amount of the power from the GIG for the 650MW Markbygden wind farm in northern Sweden.

China Guangdong Nuclear Power Group (CGN) bought a 75% stake in the under-construction project from the GIG and co-owner GE Financial Services in mid-July 2018.

The GIG will own the entire equity of the Överturingen project.

Macquarie acted as financial adviser to the sponsor on the project, raising about €160 million of senior debt from French investors Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) and Frankfurt-based KfW Ipex Bank.

Denmark’s Export Credit Agency (EKF) is providing export cover.

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