Onshore renewables
07 November 2017
GE Renewable Energy will supply 179 of its 3.6 MW turbines with 137 metre rotors, a turbine ideally suited for the project site’s wind speeds and climate. The turbine blades will be equipped with an innovative ice mitigation system by LM Wind Power, ensuring a stable level of availability and reduced downtime. GE is also providing a 20-year Full Service Agreement, and through its Grid Solutions business, will provide the high voltage switchgear for two collector substations at the wind farm.
GE Energy Financial Services and Green Investment Group (the Sponsors) have jointly acquired the project from Svevind and invested more than €300M in equity to finance the wind farm. The transaction is Green Investment Group’s first equity investment following its acquisition by Macquarie and its first investment outside of the United Kingdom. For GE, it represents GE Capital’s strategy to invest in and structure financing solutions in support of GE in key global growth markets.
The Sponsors’ financial advisory teams sought a mix of funding from development institutions, the export-credit market and commercial banks familiar with the Nordic energy market. The project was financed on a non-recourse project financing basis with close to €500M in debt financing secured from European Investment Bank (EIB), Export Credit Guarantees of the Federal Republic of Germany (Hermes Cover), NordLB (acting as MLA advisor and ECA bank), KfW IPEX-Bank and HSH Nordbank.
GE and Green Investment Group originated and structured a 19-year fixed volume Power Purchase Agreement (PPA) with a subsidiary of Norsk Hydro, one of the largest aluminum producers in the world. The PPA enables Norsk Hydro to fix the price of a significant portion of the electricity demand for their Norwegian aluminum manufacturing facilities, producing approximately 100,000 tonnes of aluminium per year. NEAS Energy (part of Centrica plc) will provide an innovative structure for the sale of Elcerts (renewable energy certificates), balancing and hedging services for Markbygden ETT. The PPA is understood to be the largest corporate wind energy PPA in the world.
Green Investment Group conducted a green impact assessment on the project, using the green reporting approach set out in its Green Investment Handbook.
The Markbygden ETT project was developed over 15 years by Swedish wind developer Svevind. In total, its development work in the Markbygden area may lead to 1,101 wind turbines becoming operational, in what would be the largest collection of wind farms in Europe. The project will be realized on properties owned by Sveaskog Förvaltnings AB, Sweden's largest forest owner, SCA Skogsfastigheter AB, the largest private forest holding in Europe, and several private property owners.
Edward Northam
Head of the Green Investment Group in Europe
Mark Dooley
Global Head of Green Energy, Macquarie Capital
Pete McCabe
President & CEO of GE's Onshore Wind Business
Brian Ward
Head of Global Markets, GE Energy Financial Services
Wolfgang Kropp
CEO of Svevind
Media enquiries
About GE Renewable Energy
Becky Norton, GE renewable Energy, Office: +1 518 385 4258 / Mobile: +1 518 522 8832, becky.norton@ge.com
GE Renewable Energy is a $10 billion start-up that brings together one of the broadest product and service portfolios of the renewable energy industry. Combining onshore and offshore wind, hydro and innovative technologies such as concentrated solar power and more recently turbine blades, GE Renewable Energy has installed more than 400+ gigawatts capacity globally to make the world work better and cleaner. With more than 22,000 employees present in more than 55 countries, GE Renewable Energy is backed by the resources of the world’s first digital industrial company. Our goal is to demonstrate to the rest of the world that nobody should ever have to choose between affordable, reliable, and sustainable energy.
About GE Energy Financial Services
Jaclyn Cochrane, GE Energy Financial Services, Office: +1 203 961 2934, jaclyn.cochrane@ge.com
A strategic GE Capital business, GE Energy Financial Services is a global energy investor that provides financial solutions that help meet the world’s energy needs. Drawing on its technical know-how, financial strength and strong risk management, GE Energy Financial Services invests in long-lived and capital-intensive projects and companies. The firm has 35+ years of experience managing energy assets through multiple economic cycles, and a global portfolio that spans conventional and renewable power, and oil and gas infrastructure projects. It is headquartered in Stamford, CT with regional hubs in London, Houston, Hong Kong and Nairobi. For more information, visit www.geenergyfinancialservices.com; Twitter @GEEnergyFinServ.
About Svevind
Svevind is a privately-owned leading developer, owner and operator of onshore wind projects in Sweden. Founded in 1998, Svevind has a record of permitting approximately 4,000 MW of wind projects in Sweden, of which 226 MW are in operation and 833 MW are under construction. Additionally, with Markbygden ETT entering its portfolio Svevind also provides operation and asset management services for 850 MW of wind projects in Sweden through its subsidiary Svevind Solutions. For more information, visit www.svevind.se.