TRIG announces acquisition of Grönhult
UK, Guernsey, St Peter Port: TRIG has announced acquisition of Grönhult, a 67.2 MW ready-to-build onshore wind farm located in the southwest of Sweden.
Grönhult is being acquired from Vattenfall, the leading Swedish utility and a major developer of renewables, who will also manage the construction process. The Project will consist of 12 Vestas 5.6 MW turbines with construction starting in Q2 2021. The project is expected to become operational at the end of Q4 2022.
On completion, the project is expected to represent approximately 3 % of TRIG’s portfolio value on a fully committed basis and investments in Sweden will account for 10 % of TRIG’s portfolio. This acquisition takes the company’s exposure to construction projects to approximately 6 % of the portfolio value.
Grönhult will receive market-based revenues once operational and the Investment Manager will consider a range of power price hedging strategies. The project is expected to benefit from increasing electricity demand through greater electrification of transport and the expansion of other energy intensive industries such as data centres in and around Stockholm and Gothenburg. Construction will be funded through equity investment rather than with project debt.
“We are pleased to expand our presence in Sweden with high quality partners. The Nordic region represents a key market for the company with a strong pipeline and favourable economics for onshore wind,” said Richard Crawford, director of Infrastructure at InfraRed Capital Partners.