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Established 1996
Tuesday 22 January 2019


Autumn Conference

Denmark’s PKA partners with Vestas for new €350m windfarm

Written by Natalie Tuck

Danish pension fund PKA has entered into a partnership with turbine maker Vestas and Swedish utility, Vattenfall, for a 353 MW wind energy project in Sweden.

It is the pension fund’s first investment in onshore wind, which will see Vestas provide 353 MW of V136-4.2 MW turbines. Vestas will become a 40 per cent shareholder through a share purchase agreement, with PKA and Vattenfall taking on 30 per cent of equity.

The project’s total construction funding is around €350m and will be partially funded by non-recourse project financing while financial close is expected to be finalised in the coming months.

The project has been developed by Vattenfall and consists of 84 V136-4.2 MW turbines to be installed across the Blakliden and Fäbodberget wind parks located in Åsele and Lycksele Municipality in central Sweden. Blakliden and Fäbodberget wind parks will consist of 50 and 34 turbines respectively.

Having previously invested in five offshore wind parks, PKA’s first investment in onshore wind underlines the attractive investment case onshore wind energy offers from a pension fund’s perspective.

Commenting, PKA CEO Peter Damgaard said: “The model created for this investment can be copied to other similar investments as we have seen it with our investments in offshore wind parks. We focus on this type of investments because we continue to find interesting opportunities in combining good returns to our members with mitigation of climate change. For us it is good business and common sense, and we therefore don’t expect this to be our last investment in onshore wind”.

In addition, Vestas CEO Anders Runevad said: “The cost of renewable energy is going down, which is making the market more competitive and creating new opportunities. In this dynamic market, we continue to leverage our deep expertise across the entire value chain to develop solutions with our customers that produce the lowest cost of energy.

"With our partners on this project, I believe we have shown our ability to tailor the right solutions and, in doing so, advance our business according to our strategy”, states Anders Runevad, President and CEO of Vestas."

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