Renewable energy investor Greencoat Renewables has announced a deal to buy the Kokkoneva wind farm from Abo wind, a global renewable energy project developer, for about €60m.
The 43.2MW asset is currently under construction in Siikalatva in Finland, and is expected to start operations in the second quarter of next year.
Greencoat said the deal is structured under a forward sale model and will only complete once Kokkoneva is fully operational.
It added that it is in line with the company's European expansion strategy and follows the purchase of a portfolio of three French wind farms last summer.
The Finnish wind market is well-established and characterised by high wind speeds, large capacity turbines and a correspondingly low cost of electricity generation.
Kokkoneva is a subsidy-free wind farm and has entered a 10-year fixed-price corporate power purchase agreement (PPA) with Gasum, Finland's state-owned gas utility for the majority of the electricity generated.
Abo wind will finance and manage the construction of the wind farm and will continue to provide operational management services for the wind farm once operational.
Paul O'Donnell, Partner at Greencoat Capital, said that as the renewable generation market continues to develop, the company expects to see greater opportunity in forward-sale and corporate PPA models.
He said he believes that Greencoat Renewables is well positioned to benefit both in Europe and in Ireland.
