Greencoat Renewables agrees to buy another Sweden wind farm

24th Jun 2022 10:29

(Sharecast News) - Greencoat Renewables has agreed to acquire the 134.4MW Ersträsk North wind farm in Norrbotten County, Sweden from Enercon, it announced on Friday, on a forward-sale basis.

The AIM-traded firm said the wind farm was currently under construction, and was expected to be fully commissioned in the fourth quarter of 2023.

Once operational, Enercon would provide long-term operations and maintenance services.

Ersträsk North would initially operate as a merchant asset, but had the flexibility to contract the electricity produced via a corporate power purchase agreement in future, Greencoat said.

It was the company's second acquisition in the area, having acquired Ersträsk South wind farm in October last year, and would bring its overall capacity on the site to 235MW.

"Sweden is becoming a major hub for green energy, with the combination of low-cost generation and a number of attractive routes to market," said Paul O'Donnell, partner at the firm's investment manager Greencoat Capital.

"As the renewable generation market continues to develop, we expect to see greater opportunity in the unsubsidised renewables market and believe Greencoat Renewables is well-positioned to benefit both across mainland Europe and in Ireland."

At 1035 BST, shares in Greencoat Renewables were up 1.76% at 1.16p.

Reporting by Josh White at Sharecast.com.