Renewable Power Capital, a pan-European renewable energy investment platform, has agreed to acquire ready-to-build onshore wind projects in Sweden. The projects have a combined capacity of 528 megawatts. The deal is valued at €800million ($857 million). RPC was established in 2020 with the backing of Canada Pension Plan Investment Board.
31 May 2022 – LONDON
Renewable Power Capital (RPC) has today reached a deal on a 528MW cluster of ready-to-build onshore wind projects located in Sweden’s Kramfors and Sollefteå municipalities.
The transaction, valued at €800million, includes the acquisition of the projects and the commitment of the capital required for construction. The four sites are expected to generate power ready for export to grid in Q4 2025.
The deal is a significant milestone for RPC, the third of 2022, as it more than doubles the company’s onshore wind portfolio from 317MW to a total of 845MW across Sweden and Finland, in addition to a nearly 4GW solar PV pipeline in Spain.
The transaction demonstrates RPC’s significant investment appetite, stemming from its backing from CPP Investments. This combined with RPC’s deep capability and flexible capital has enabled it to make this acquisition unlevered and unhedged and will allow the company to optimize the power contracting and debt financing structure for the sites. RPC took the same approach on its maiden Finnish and Swedish onshore wind acquisitions, and earlier this year announced the signing of 10-year corporate PPAs for its 171MW Finnish projects with Elisa, Alpiq, and Gasum.
In addition, RPC will be responsible for completing the procurement and overseeing the construction management of the projects, bringing to bear its increasing industrial capabilities as it seeks to partner with leading equipment manufacturers and construction companies.
Bob Psaradellis, CEO, Renewable Power Capital said:
“We are very excited about this deal. It demonstrates not only our ability to invest at scale in European renewables but also showcases our rapidly growing commercial and industrial capabilities across power markets, debt financing, construction management, and procurement.
“Today marks a landmark moment, and the biggest deal to date for RPC, but it also forms part of a long-term strategy to invest in post subsidy renewable power and storage infrastructure across Europe.
“We set out to bring a new approach to investing in, owning, and operating renewable energy assets and we see our relationship to projects very much over the long term, which is why we continue to have strong conviction in renewable energy despite the current volatility in the market. Increased renewables capacity in Europe in a post subsidy world is good for energy security and for the energy transition.”
Omid Ashrafi, Managing Partner at Newsec Infra, advisor to the sellers said:
“We are delighted to sign the deal with RPC and work alongside the team to enable the construction of this high quality 528 MW portfolio. The Nordics continue to be on the forefront of the energy transition with subsidy-independent large-scale renewable energy projects that require sophistication in both technical, financial and commercial structuring. Our advisory scope has in this deal spanned beyond renewable energy M&A to also commercial and technical optimization during the past two years of development. We are very excited to follow RPC’s continued journey toward the successful construction and operation of this important project.”
Scale of today’s announcement
The ready-to-build development of onshore wind projects located in Sweden’s Northern Sundsvall, SE2 power price zone.
The project locations are as follows:
Knäsjöberget, in the Sollefteå municipality
Sörlidberget, in the Kramfors and Sollefteå municipalities
Vitberget, in the Kramfors municipality
Storhöjden, in the Kramfors municipality
RPC deals to date
RPC in February made its first investment in Sweden by acquiring a 146MW onshore wind project. RPC’s first investment as a company was in January 2021 with the acquisition of three onshore wind farm projects in Finland with a combined capacity of 171 MW, a transaction valued at €245 million.
Renewable Power Capital
Renewable Power Capital is a pan-European renewable energy investment platform established in 2020, backed by CPP Investments. Renewable Power Capital is registered in the United Kingdom, with headquarters in London. We invest in the development, construction, and long-term ownership of solar, onshore wind and battery storage projects, enabling the energy transition and driving stable long-term, risk-adjusted returns. Our flexible mandate allows us to structure investments that recognize the changing market dynamics in Europe and to develop innovate solutions for managing development, construction, and merchant investments. For more information, please visit www.renewablepowercapital.com
Newsec Infra have advised on more than 65 closed renewable energy deals at a value of approximately EUR 9 billion. These include some of the key landmark investments, offtake strategies and innovative project financings, enabling the market entry of influential market participants to the Nordics during the past 15 years. For more information, please visit www.newsecinfra.com