Highlights
- The Björnberget project has a capacity of 372MW
- Global renewable energy company RES sells project to Prime Capital and Enlight Renewable Energy
- Deal includes construction EPC and asset management contracts
- RES' asset management portfolio in Scandinavia grows to over one gigawatt
- The project will produce energy for circa. 300,000 European households and help avoid over 600,000 tons of CO2 a year
RES, the world's largest independent renewable energy company, has sold its Björnberget wind project to German independent asset manager Prime Capital AG who brought in co-investor Enlight Renewable Energy (Enlight), a Tel-Aviv-listed independent power producer with over 1.4GW under operation and construction. This is RES' first deal with Prime Capital and their first investment from its newly launched Prime Green Energy Infrastructure Fund (PGEIF, the Fund). The PGEIF focuses on wind-powered energy assets in the Nordic countries, with no reliance on government support and with the lowest levelized cost of electricity in Europe. At 372MW, the Björnberget project is not only one of the largest onshore wind farms in Sweden, but one of the largest to start construction in Europe this year. The project is expected to reach commercial operation at the beginning of 2023. When constructed, the project will produce the equivalent consumption of circa. 300,000 European households and help avoid over 600,000 tonnes of CO2 a year.
The Björnberget project was developed by RES and is currently in the final development stages, having obtained a final building permit, completed environmental assessments and secured a grid connection agreement and all main land use rights. RES is to provide the balance of plant for the project, and the commercial and technical management during the operating phase. This will grow RES' Asset Management portfolio in Scandinavia to over a gigawatt. Matilda Afzelius, CEO of RES in Scandinavia said "Björnberget is a significant project and one RES is very proud of. The size of the project means a new substation will be constructed locally, enabling opportunities for further wind development in the region and further supporting Sweden's journey towards 100% renewables. We have also developed a trusted relationship with both Prime Capital and Enlight Energy and we look forward to constructing and managing this asset for them."
Ivor Catto, RES' Group CEO commented, "In harnessing Sweden's strong wind resource, at 372MW Björnberget is a significant project in the continued decarbonisation of the energy sector and represents our third major wind project in the Nordics this year. It has been great to work collaboratively with both Enlight and Prime Capital to bring this to a point where we can initiate construction."
Prime Capital are in exclusive negotiations with a global technology company to sign a 10-12 year power purchase agreement (PPA) off-taking roughly half of the project's electricity production. Including Björnberget, Prime Capital's renewable energy portfolio in the Nordics soars to over 1GW, making it the second largest investor in the region. "We are very happy to bring Enlight on-board as a very experienced partner, with whom we plan further strategic investments in the Nordics, given our focus on large-scale assets. As testament to the Fund's strategy and the attractiveness of the projects we pursue, Enlight has also committed additional money to the Fund" said Dr Mathias Bimberg, Head of Infrastructure at Prime Capital.
Siemens Gamesa have been selected to provide the turbines, utilising 60 of its SG 5.8-170 turbines. These will operate at 6.2MW, which combined with the largest rotor in the onshore segment, maximises production for the site and minimises the cost of energy.
Gilad Yavetz, CEO and Co-founder of Enlight said, "Especially during these difficult days for the Israeli economy, we are very proud of the completion of a huge deal by Enlight. We would like to thank our partners - Prime Green Energy Fund, RES who developed the project and will perform its construction works, and Siemens Gamesa who will provide state-of-the-art turbines for the project, for showing their utmost commitment and worked with great intensity with us until the transaction was completed. The new project will significantly increase Enlight's portfolio and its revenues, and its construction will begin immediately. This is Enlight's second large scale project in the Nordic market, the biggest, most developed and liquid energy market in Europe. This transaction is part of the company's expansion strategy in the Nordic market and will increase Enlight's flexibility and competitive advantages in many aspects".
Background
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RES is the world's largest independent renewable energy company, active in onshore and offshore wind, solar, energy storage and transmission and distribution. At the forefront of the industry for nearly 40 years, RES has delivered more than 18GW of renewable energy projects across the globe and supports an operational asset portfolio exceeding 6.5GW worldwide for a large client base. Understanding the unique needs of corporate clients, RES has secured over 1.5GW of power purchase agreements (PPAs) enabling access to energy at the lowest cost. RES employs more than 3000 people and is active in 10 countries. For more information, visit www.res-group.com.
Please contact rob.armstrong@res-group.com -
Prime Capital AG is an independent asset management firm and financial services provider. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energies and Private Debt. Furthermore, the company offers Asset Management Outsourcing and Access Solutions. Prime Capital was founded in 2006, currently employs around 100 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of June 2020, Prime Capital has approximately EUR 17.7bn Assets under Management, managed and administered. -
Enlight Renewable Energy, founded in 2008, trades on the Tel-Aviv-125 Index. With 98% of its shares held by the public, Enlight is a leading company in the development, financing, construction, and operations of renewable energy generation projects. The company has operations in Israel and Europe with a diversified portfolio of income-generating projects, project during construction and pre-construction that total over 1.4GW and an additional 2.3GW in initial development stages. Enlight enjoys consistent growth in revenues from long term electricity sales of its yielding assets, and in parallel increasing its diversification to additional markets and clean energy segments.
