The involvement of Windforce provides NordanVind with the access to capital and international experience needed to develop projects "far faster than would otherwise be the case," says NordanVind's Hans-Erik Flodin. "We will provide the financing, the project management, the commercial expertise," says Windforce chairman Alex Kulpecz. "This is another example of how quickly we want to grow." The 600 MW for Sweden brings Windforce's development portfolio to 1400 MW.
Two-thirds of the Swedish capacity will be built in three offshore projects in the Bay of Bosnia, with the remainder spread over some ten projects of 10-50 MW split between coastal and mountain sites in Sweden. Kulpecz says 200-300 MW of the 600 MW is "very probable," with the remainder to come later. A start will be made on 200 MW next year, adds director Shaun Kingsbury. "It's a nice portfolio; nice timing," he comments.
Kulpecz stresses the portfolio approach, explaining it spreads the risk over a range of projects. Once financing is complete, Windforce will initially own each plant before selling it on while retaining 20-25% of the equity.
The green power production will be sold under power purchase agreements to power marketers and traders or local utilities who will retail it directly to customers and through the Scandinavian power exchange, Nordpool. "Companies trading green power are very active," stresses Kingsbury. In Sweden's liberalised market, there is considerable demand for electricity from renewable sources, he says. Sweden, like Denmark, is to introduce a system of "green certificates" to facilitate trade in the environmental value of renewable energy.
By using a portfolio to aggregate generation, the variability of wind output is not an issue, says Windforce. "Power marketers and traders are very willing to take that risk onto their books," explains the company's development director Matthias Rapp. "The attraction for them is getting the supply of green power. All the balancing will be up to the traders. Traders have big books. They will balance it. It's all a matter of building on enough scale."
A final decision on which company will supply the wind turbines has yet to be made.