BayWa r.e. sells 62 MW Swedish wind farm to ERG
Located in the South of Sweden, the Furuby wind farm will consist of 10 Siemens Gamesa 5.X turbines with a tip height of 220 meters. This is BayWa r.e.’s third deal in Sweden with Siemens Gamesa and will cover a 25-year service agreement with the major turbine manufacturer.
The project, which is entering construction within the next month, was brought forward for development by BayWa r.e. who will support during the construction and provide ongoing asset management once operational.
The sale of the Furuby wind farm marks BayWa r.e.’s second major transaction in the Southern part of Sweden, after the sale of its 94.6 MW Lyngsåsa wind farm to SUSI Partners in August 2019.
“We’re delighted to finalise the sale of the Furuby wind farm to ERG, who like us, has electricity production from renewable and sustainable sources at the heart of their business. We are looking forward to building on this new relationship with ERG and working with them to drive forward the energy transition in Europe”, said Håkan Wallin, CEO, BayWa r.e. Nordic AB.
“This success for BayWa r.e. also underlines the great opportunity for developers and investors in the growing Swedish wind market, which has become a key destination for renewable energy”, added Lorenzo Palombi, Director of Wind Projects EMEA at BayWa r.e..
With significant wind resource and the capability to provide enough space for large projects, wind energy is helping Sweden fulfil its target of a fully renewable energy system by 2040 and carbon neutrality by 2050.
BayWa r.e. expects to complete commissioning of the Furuby wind farm at the end of 2022. Furuby will have an annual production of 210 GWh. This is equivalent to the annual consumption of 27,100 average households in Sweden, which are commonly electric heated. In comparison to a modern gas plant, it will save 88,620 tons of CO2 emissions each year.
Transactions like Furuby reflect BayWa r.e.’s strong and continuous growth during recent years. Last month, the company announced the close of a capital increase transaction by Swiss investor Energy Infrastructure Partners (EIP), which will now help drive forward its ambitious global growth plans and also sees BayWa r.e. entering the independent power producer (IPP) market.
At the same time, BayWa r.e. is continuing to build a pipeline of several hundreds of megawatts in different stages of development in both wind and PV in Sweden. Its latest acquisition from Siemens Gamesa, completed at the end of April, of a four-wind turbine project, “Hedared”, located in Southern Sweden, reflects this success and the strong partnership between BayWa r.e. and the leading turbine manufacturer.
BayWa r.e. was supported on the deal with ERG by Newsec Infra as financial adviser and Mannheimer Swartling as legal adviser.