Arise selling 242 MW of Swedish wind projects to TRIG, InfraRed

Wind farm in Sweden. Author: Jämtkraft. License: Creative Commons, Attribution 2.0 Generic.

May 27 (Renewables Now) - Swedish wind power company Arise AB (STO:ARISE) has agreed to sell a 242-MW portfolio of Swedish shovel-ready onshore wind projects to The Renewables Infrastructure Group Ltd (LON:TRIG) and funds managed by investment manager InfraRed.

The deal will be executed via the sale of Krange Vind AB, a company that holds rights to the Ranasjo and Salsjo projects, the vendor said on Thursday. In this regard, Arise will acquire the stock of Krange Vind under an existing option agreement with NordanVind Vindkraft AB, its co-development partner in the two schemes.

Under the agreement, Arise will get EUR 8.5 million (USD 10.4m) in fixed consideration for the assets, while an additional EUR 11.6 million in variable consideration will be received after construction is finalised. Size of the variable portion will depend on the project delivery versus plan and budget, Arise said.

The Swedish firm said it expects the sale to add SEK 140 million (USD 16.9m/EUR 13.8m) in total to its earnings over the 2021-2024 period.

In a separate statement, TRIG said it will take a 50% interest in the Ranasjo and Salsjo projects in central Sweden, referring to them as the Twin Peaks portfolio. The remaining 50% will be bought by InfraRed European Infrastructure Income Fund 4.

Construction of the wind farms is slated to begin in the third quarter, with commissioning expected in the first half of 2024. Each plant will be equipped with Siemens Gamesa 170-6.2MW turbines, with the total of 39 turbines seen to generate enough electricity to supply 45,000 homes.

Arise will manage the construction process. Once the wind farms start operation, the Swedish company will provide asset management services on behalf of the new owners.

The portfolio will bring market-based revenues, while TRIG will consider a range of power price hedging strategies.

The deal is pending a range of conditions, among them, entering into final agreements for the power plants’ construction. Its closing is expected to take place by July.

(EUR 1.0 = USD 1.226)

(SEK 1.0 = USD 0.121/EUR 0.099)

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