Vestas has entered into a partnership with Swedish utility Vattenfall and Danish pension fund PKA for a 353-MW wind-energy project in Sweden. Vestas will provide 353 MW of its V136-4.2 MW turbines and become a shareholder through a share purchase agreement for 40% of the project. PKA and Vattenfall will own 30 percent project equity each.
The project’s total construction funding is around €350 million. Financial close is expected to be finalized in the coming months.
Vattenfall developed the project, which consists of 84 V136-4.2 MW turbines to be installed across the Blakliden and Fäbodberget wind parks located in Åsele and Lycksele Municipality in central Sweden. Blakliden and Fäbodberget wind parks will consist of 50 and 34 turbines, respectively.
“It is highly gratifying that we can now continue our expansion of onshore wind farms in Sweden. Blakliden/Fäbodberget represents an important step in our strategy to become fossil-free within one generation. It is also important for Vattenfall to demonstrate that we are making a major investment in renewables in Sweden,” said Magnus Hall, president and CEO of Vattenfall.
Having previously invested in five offshore wind parks, PKA’s first investment in onshore wind underlines the attractive investment case onshore wind energy offers from a pension fund’s perspective. “The model created for this investment can be copied to other similar investments as we have seen it with our investments in offshore wind parks,” Peter Damgaard, CEO of PKA, said. “We focus on this type of investment because we continue to find interesting opportunities in combining good returns to our members with mitigation of climate change. For us it is good business and common sense, and we therefore don’t expect this to be our last investment in onshore wind.”
The order includes supply and installation of the wind turbines as well as a 25-year Active Output Management (AOM 5000) service contract. Turbine delivery is expected to begin in first half of 2021, with full commissioning planned for Q4 2021.