flow explores how Deutsche Bank’s project finance services partnered with one of Europe’s leading asset managers for renewable energy investments in the growing corporate power purchase agreement market for Nordic wind energy
There is a bluster of activity in the Nordic onshore wind market with several large corporates buying their energy sources from this market, signing up with clusters of farms for periods of 15 years or more.
These power purchase agreement (PPA)-driven transactions in Nordic wind make the market not only the largest for corporate offtake but also the longest. In these deals, corporates buy an offtake from the local grid and use it to power their centres and production sites.
The largest deal occurred in Sweden in 2017 when, according to infrastructure magazine Inspiratia, an aluminium producer struck a 19-year agreement to buy power from the planned 650MW Markbygden ETT project – whose sponsors General Electric and Macquarie's Green Investment Group (GIG) sold a majority stake to China General Nuclear (CGN) power group.
In July 2018, GIG joined forces with Norsk Hydro again on the 235MW Överturingen wind farm, also in Sweden, sealing a 29-year PPA.
In Norway, another aluminium producer Alcoa agreed a PPA with the 281.4MW Nordlicht wind farm, in a deal that reportedly included funding from Norwegian export credit agency GIEK.
flow magazine is published twice per year and can be read online and delivered to your door in print
Find out more about products and services