The Renewables Infrastructure Group (TRIG) has signed contracts to acquire a 100% interest in the Jadraas wind farm located in Sweden.
The Renewables Infrastructure Group (TRIG) has signed contracts to acquire a 100% interest in the Jadraas wind farm. This wind farm is located near Ockelbo, north of Stockholm. The company is utilizing its purchase facility to finance the deal and it is expected to be completed in March.
At the time of the deal, the wind farm was still in the process of construction. The first phase includes 26 of Enercon E-103 turbines with 2.35MW capacity each and is expected to become operational in the first quarter of 2019. Next phase will include 42 Enercon E-126 turbines with 4.0MW capacity each and will be functional in early 2020.
Uncovering Jadraas’ energy utilities
Jadraas farm is an operational onshore wind farm with a capacity of 212.85MW for a consideration of approximately EUR207 million on an unlevered basis. The Jadraas wind farm is powered by 66 of Vesta’s V-112 turbines with 3.225MW capacity each. This farm has been in operation since May 2013. It is supported by an all-inclusive long term operations and maintenance contract. And, upon the deal’s completion, it will represent about 11% of TRIG’s portfolio on a committed investment basis. TRIG stated that with this acquisition, its portfolio capacity will increase to 1.32GW.
Jadraas has hedging agreements in place fixing power prices for 70% of expected power generation till the end of 2023, and approximately 50% of the green certificates until the end of 2027. Renewables in Sweden benefit from green certificates and majority of their revenues come from power sales.
TRIG’s expands its presence by acquiring various assets
TRIG continues to manage its currency exposure to non-sterling assets by hedging approximately 50% of the valuation of such assets. Succeeding the Jadraas purchase, 34% of TRIG’s portfolio value is in assets outside the UK, measured on a committed investment basis. In December 2018, the company also acquired 75% stake in the 229.1MW Ersträsk Wind Farm in Sweden from Enercon Independent Power Producer
Statement from Capital Partners Infrastructure Director of InfraRed
InfraRed Capital Partners infrastructure director Richard Crawford stated, “Jadraas is our second investment in Sweden and represents an expansion of our presence in the Nordic market. Further, he added, “With power price hedging in place for most of expected generation for the next 5 years and attractive unlevered returns, this acquisition complements our existing portfolio very well, whilst increasing our exposure to one of Europe’s most attractive regions for renewable energy development.”