02.04.2019 - Axpo Nordic AS has once again underlined its pioneering role in the field of long-term power purchase agreements (PPA): together with re:cap global investors, an internationally-oriented asset manager for renewable energy investments based in Zug/Switzerland, the North European subsidiary of Axpo signed a 10 years fixed-price power contract for an onshore wind farm in Bröcklingberget, Sweden, and secures the revenue stream for investors by means of a PPA.
In September 2018, re:cap global investors decided to expand the portfolio of its renewable energy fund FP Lux Investments Wind Infrastructure I in the Nordic region by purchasing the said wind farm in Bröck-lingberget from Arise AB, a Swedish wind farm developer. The 45 MW wind farm in Northern Sweden, situated some 120 km west of the city of Sundsvall, consists of 11 Siemens DD 142 turbines and is expected to produce around 161 GWh power per year, which corresponds to the annual consumption of 29.000 households. Thus, the turbines will avoid the emission of around 33,800 tonnes of CO2 per year. Currently, the wind farm is under construction and will be operational by the end of 2019. In addition to Sweden, the Wind Infrastructure I is invested in wind farms in Germany, Finland and France. Overall, the portfolio of the fund has now reached a project volume of 330 MW.
When it comes to Bröcklingberget, all revenues will come from selling power, related electricity certificates and GoO (Guarantees of Origin). Thus, they are nearly independent from government subsidies and policies such as feed-in-tariffs. In this context, Axpo and re:cap negotiated a 10year fixed-price power contract for the power generated by the wind farm. In addition to that, Axpo is going to grant re:cap the market access in order to enable the company to sell the corresponding power certificates and GoO for the term of the contract. While the certificates are a market-based support system in Sweden and Norway for renewable electricity production, GoO are a market-based tracking instrument labelling electricity in the EU from renewable sources.
Tomas Sjöberg, Managing Director of Axpo’s subsidiary in Sweden, comments: “We are very glad to have concluded this long-term contract with re:cap. It reinforces Axpo’s position as a leading marketer of power from renewable energies in the Nordics. Long-term power supply and purchase agreements are one of our most important growth areas.”
Thomas Seibel, CEO re:cap global investors, says: “The cumulative volume of PPA, especially in the Nordic countries, shows that renewable energy projects have become competitive once and for all. In line with this, the main focus of our future activities lies on concluding and optimising PPA in order to make renewable energy investments independent from government subsidies and secure solid revenue streams for our investors. With stable investment conditions and a transparent regulatory system, Sweden is one of the most important European wind markets. Bröcklingberget is an important addition towards further diversification of our portfolio. We are very pleased about the cooperation with Axpo, who have been an invaluable partner for us on the Swedish market.”
Axpo has been present in the Nordic and the Baltic region since 2003. The Nordic subsidiary with its headquarters in Oslo and further offices in Malmö and Helsinki has developed into a leading market participant ever since and ranks among the top providers of PPA. The local business activities in the Nordics are part of Axpo’s strategy of constantly expanding its international presence and business specializing in tailor-made energy solutions for its customers in recent years. Meanwhile, the company is present in 28 countries, active in 39 markets in Europe and the United States, and works closely with industrial companies, producers, energy supply companies, SME's as well as market players from the area of renewable energies.
Especially in the area of long-term supply and purchase agreements, customer demand is very strong in many markets including Nordic region. PPA are developing into a mega-trend in the area of renewable energies as numerous countries are reducing government subsidies for the production of renewable en-ergy from sun and wind. In the foreseeable future, feed-in remuneration for producers will be eliminated partially or wholly. That’s why the number of PPA concluded worldwide reached a new peak recently. Axpo is one of the forerunners when it comes to marketing renewable energies in Europe and contributes to make possible renewable projects with a significant capacity all over the continent.
re:cap global investors is an independent, internationally-oriented M&A advisor and asset manager for renewable energies. With a specialist team consisting largely of solar and wind energy experts, it provides clients with services geared to the evaluation and selection of suitable pro-jects. Where necessary, re:cap also acts as asset manager for the facilities, reviewing them regu-larly for potential process and revenue optimisation. As a boutique firm, re:cap offers first-class, high-end advice to institutional investors looking to invest in infrastructure projects in the renew-able energy sector. On behalf of its clients, the consultant has already recommended and ac-quired over 700 megawatts of capacity from projects delivering a total capacity more than 13,000 megawatts. For more information, visit www.re-cap.ch
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