Hermes Infrastructure, on behalf of Hermes Infrastructure Fund II (HIF II), is to invest in an 813 megawatt (MW) portfolio of five Swedish onshore wind farms in conjunction with consortium partner CGN Europe Energy (CGNEE).
HIF II will take an initial 20 per cent equity ownership stake and CGNEE has underwritten the remaining 80 per cent. Aquila Capital will retain an ongoing role in relation to the portfolio.
The portfolio comprises two operational onshore wind farms with an aggregate capacity of 216MW and three onshore wind projects in late-stage construction with an aggregate capacity of 597MW, all located in Sweden. The portfolio is estimated to offset 156,000 tonnes of CO2 per annum[2] and contributes to a number of the United Nations Sustainable Development Goals.
Completion of the two operational wind farms occurred on Monday 16 September and the remaining three are due to complete as they commence operations, expected by Q1 2020.
The portfolio benefits from a comprehensive contractual package that includes robust long-term, fixed-price, power-purchase agreements that limit exposure to merchant power prices, and agreements with world class suppliers for operations and maintenance services.
Peter Hofbauer, Head of Infrastructure, Hermes GPE, says: “We are very pleased to announce this transaction for a high-quality portfolio of wind farms in Sweden in conjunction with our strategic partner, CGNEE. Once fully operational, the portfolio will increase renewable-energy generation capacity already owned and managed by Hermes Infrastructure on behalf of a range of UK and international institutional investors to more than one gigawatt.”
The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other Hermes communications, strategies or products.
