Greencoat Renewables to acquire Finnish windfarm in €60m deal

15 Feb 2021

Image: Greencoat Renewables

This marks the renewable infrastructure company’s first transaction in the Nordic market.

Greencoat Renewables, the Dublin-headquartered renewable infrastructure company, is acquiring a windfarm in Finland for approximately €60m.

The 43.2MW Kokkoneva windfarm is currently under construction in Siikalatva, Finland, and commercial operations are expected to commence in the second quarter of 2022. The transaction will only be completed once the development is fully operational.

Abo Wind will finance and manage the construction of the windfarm and will provide operational management services once it is operational. It is a subsidy-free windfarm and has entered a 10-year fixed-price power purchase agreement (PPA) with Gasum, Finland’s state-owned gas utility, for the majority of the electricity generated.

Greencoat said that this deal, which marks the company’s first transaction in the Nordic market, is line with its European expansion strategy.

Paul O’Donnell, partner at Greencoat Capital, described the Nordic region as 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,” he said.

“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.”

Investment opportunities

Last December, Greencoat Renewables raised €125m in a share placing. The company said net proceeds would be used to refinance its revolving credit facility to take advantage of more than €500m worth of acquisition opportunities in Ireland and other target European countries.

As part of its European expansion plans, Greencoat acquired a portfolio of three French windfarms in summer 2020.

Closer to home, the company announced in December last year that it would buy two new windfarms in Ireland, located in Cloghan in Co Offaly and Taghart in Co Cavan, when they become operational in 2022.

Sarah Harford was sub-editor of Silicon Republic