GIG closes over US$300 million financing for Swedish wind project

Green Investment Group (GIG), the specialist green energy principal investment business of Macquarie Group, has closed EUR270 million (US$316.4 million) financing for the 235 MW Överturingen wind project, located in central Sweden.

Developed by GIG and SCA Energy AB, the project involves the installation of 56 Siemens Gamesa 4.2 MW turbines at Länsterhöjden & Storflötten in the Ånge Municipality of Västernorrland, central Sweden. GIG will own 100% of the equity in the project.

Macquarie Capital (Europe) Limited acted as financial adviser, raising approximately EUR160 million (US$187.5 million) of senior debt from Crédit Agricole Corporate and Investment Bank and KfW IPEX-Bank GmbH.

Denmark’s Export Credit Agency (EKF) is providing export credit cover. NEAS Energy (part of Centrica plc) will provide balancing and hedging services for the project.

Main construction at the project site is scheduled to commence imminently and is expected to be completed by December 2019. Siemens Gamesa will provide operations and maintenance services to the wind farm through a 25-year agreement. 

The project has secured a 29-year fixed-volume power purchase agreement (PPA) with Norsk Hydro, one of the largest aluminum companies in the world. This is is believed to be one of the longest corporate wind energy PPAs ever executed. 

This is GIG's second onshore wind project in Sweden, with construction underway on the 650 MW Markbygden Ett wind farm in the north of the country. GIG reached financial close on this project in November 2017, with Norsk Hydro agreeing to purchase the power produced.