The project was developed by GIG and SCA Energy AB (SCA) and will comprise 56 Siemens Gamesa 4.2 MW turbines.
Partnering with SCA, GIG has commercialized, structured and financed the project through development to financial close. This includes the origination and structuring of what is believed to be one of the longest corporate wind energy PPA’s globally, with a 29-year fixed-volume agreement with Norsk Hydro – one of the largest aluminum companies in the world. Scandinavia is a priority market for GIG and the transaction extends the growing relationship with Norsk Hydro following the GIG backed 650 MW Markbygden Ett onshore wind farm last year.
Ed Northam, Head of GIG in Europe, said, “The Överturingen project demonstrates our capability as a development partner, successfully bringing permitted projects forward to financial close. By working closely with SCA, Siemens Gamesa and Norsk Hydro, we were able to establish the partnerships needed to convert a development opportunity into a market-leading project under construction.”
GIG will own 100 percent of the equity in the project. Macquarie Capital (Europe) Limited acted as financial adviser to the sponsor on the project. Siemens Gamesa will provide operations and maintenance services to the project through a 25-year agreement. NEAS Energy (part of Centrica plc) will provide balancing and hedging services for the project.
Installation at the site in the Ånge community, situated halfway between the cities of Sundsvall and Östersund, is scheduled for 2019 with full commissioning the same year. Manufacturing of nacelles and blades is planned in the Siemens Gamesa facilities in Denmark. Other essential construction work will be sourced from local companies.
“We are proud to set a visible example of the performance of our products in Sweden,” said Ricardo Chocarro, CEO Onshore at Siemens Gamesa Renewable Energy. “Our technology perfectly meets the site- and project-specific requirements. At the same time, this project demonstrates the attractiveness of wind energy for the capital markets, investors and communities”.
This is the second Swedish onshore project to be backed by GIG in the space of a year, with construction underway on the Markbygden Ett onshore wind farm in the north of the country. GIG reached financial close on this project with GE Energy Financial Services (GEEFS) in November 2017.
