Nordisk Vindkraft, a developer of wind farms in the Nordic region, has teamed with UK-based private equity and renewable energy investor HgCapital for the construction of the 44-megawatt (MW) Ytterberg wind farm in the Mala municipality of Sweden.
HgCapital is providing an undisclosed amount of equity for the project from its managed funds, while Germany’s Commerzbank is underwriting a 17-year project financing facility. Vestas, the Danish wind turbine manufacturer, is supplying 22 V-90 2MW turbines for the project.
In January 2007, the same consortium – Nordisk Vindkraft, HgCapital, Vestas and Commerzbank – developed and built the 95MW Havsnas project in Sweden’s Jamtland province. With the Ytterberg project, HgCapital claims to have become “the largest sponsor of Swedish onshore wind projects under construction or operating”.
Construction of Ytterberg has already started, and the project is expected to be fully operational by 2012. The wind farm will generate enough electricity to power 25,000 Swedish homes. HgCapital said the site was chosen because of good wind resource, grid access and minimal environmental impact.
In June this year, HgCapital filed an application with the European Investment Bank (EIB) for up to €50 million of funding for its second renewable energy fund, which is targeting €500 million in total, according to details published on the EIB website. The firm’s debut €300 million renewable energy fund was set up in 2006.