CPP Investments' RPC Acquires 528MW Wind Farms in Sweden
Renewable Power Capital (RPC) has signed a deal worth €800m to acquire a 528MW cluster of ready-to-build onshore wind farms in Sweden from undisclosed sellers advised by Newsec Infra.
The wind farms are located in the Kramfors and Sollefteå municipalities and are expected to power 182,000 homes after their commissioning.
According to Renewable Power Capital, the consideration covers the acquisition cost and the commitment of the capital needed for constructing the wind farms.
The company said that the four sites are anticipated to produce power that is ready for export to the grid in the fourth quarter of 2025. The four sites are Knäsjöberget, Sörlidberget, Vitberget, and Storhöjden.
Renewable Power Capital will also handle the procurement and supervision of the construction of the projects.
Newsec Infra managing partner Omid Ashrafi said: “We are delighted to sign the deal with RPC and work alongside the team to enable the construction of this high quality 528 MW portfolio.
“The Nordics continue to be on the forefront of the energy transition with subsidy-independent large-scale renewable energy projects that require sophistication in both technical, financial and commercial structuring.”
The deal is the third for Renewable Power Capital in 2022. It increases its onshore wind portfolio from 317MW to 845MW across Sweden and Finland along with a pipeline of nearly 4GW solar photovoltaic (PV) projects in Spain.
Renewable Power Capital CEO Bob Psaradellis said: “We set out to bring a new approach to investing in, owning, and operating renewable energy assets and we see our relationship to projects very much over the long term, which is why we continue to have strong conviction in renewable energy despite the current volatility in the market.
“Increased renewables capacity in Europe in a post subsidy world is good for energy security and for the energy transition.”
Renewable Power Capital was established in 2020 by Canada Pension Plan Investment Board (CPP Investments) as a pan-European renewable energy investment platform.
In March 2022, the renewable energy firm signed a 10-year power purchase agreement with Gasum under which the latter will buy the majority of the power produced by the 44MW Rustari wind farm in Finland.
Renewables Now also reports Renewable Power Capital snaps up 528-MW wind project portfolio in Sweden:
Renewable Power Capital (RPC), a UK-based renewables platform backed by Canada Pension Plan Investment Board (CPP Investments), today said it has struck a deal for the acquisition of 528 MW of ready-to-build onshore wind projects in Sweden.
The cluster includes four sites in Kramfors and Solleftea municipalities that are expected to start supplying power to the grid in the final quarter of 2025.
The deal represents an investment of EUR 800 million (USD 857m), including the acquisition of the schemes and the funds needed for their construction. It more than doubles RPC’s onshore wind portfolio to 845 MW across Sweden and Finland, with the company also having a solar pipeline in Spain of almost 4 GW.
RPC will be responsible for the procurement and construction management of the newly acquired projects.
The company, which was set up in 2020, said the purchase is a sign of its “significant investment appetite, stemming from its backing from CPP Investments.”
“Today marks a landmark moment, and the biggest deal to date for RPC, but it also forms part of a long-term strategy to invest in post subsidy renewable power and storage infrastructure across Europe,” commented chief executive Bob Psaradellis.
The sellers, which were not named, were advised by Newsec Infra. “Our advisory scope has in this deal spanned beyond renewable energy M&A to also commercial and technical optimisation during the past two years of development,” noted Omid Ashrafi, managing partner at the advisor.
Renewable Capital Power (RPC) put out this press release on this landmark deal which sees it more than double its onshore wind portfolio as the UK-based renewable energy company scales up its business:
- Renewable Power Capital’s 528MW onshore wind cluster deal will provide electricity to power the equivalent to 182,000 homes.
- The landmark deal worth €800million is the most significant to date in a growing RPC portfolio.
- The project also sees RPC take over responsibility for procurement and construction management.
Renewable Power Capital (RPC) has today reached a deal on a 528MW cluster of ready-to-build onshore wind projects located in Sweden’s Kramfors and Sollefteå municipalities.
The transaction, valued at €800million, includes the acquisition of the projects and the commitment of the capital required for construction. The four sites are expected to generate power ready for export to grid in Q4 2025.
The deal is a significant milestone for RPC, the third of 2022, as it more than doubles the company’s onshore wind portfolio from 317MW to a total of 845MW across Sweden and Finland, in addition to a nearly 4GW solar PV pipeline in Spain.
The transaction demonstrates RPC’s significant investment appetite, stemming from its backing from CPP Investments. This combined with RPC’s deep capability and flexible capital has enabled it to make this acquisition unlevered and unhedged and will allow the company to optimize the power contracting and debt financing structure for the sites. RPC took the same approach on its maiden Finnish and Swedish onshore wind acquisitions, and earlier this year announced the signing of 10-year corporate PPAs for its 171MW Finnish projects with Elisa, Alpiq, and Gasum.
In addition, RPC will be responsible for completing the procurement and overseeing the construction management of the projects, bringing to bear its increasing industrial capabilities as it seeks to partner with leading equipment manufacturers and construction companies.
Bob Psaradellis, CEO, Renewable Power Capital said:
“We are very excited about this deal. It demonstrates not only our ability to invest at scale in European renewables but also showcases our rapidly growing commercial and industrial capabilities across power markets, debt financing, construction management, and procurement.
“Today marks a landmark moment, and the biggest deal to date for RPC, but it also forms part of a long-term strategy to invest in post subsidy renewable power and storage infrastructure across Europe.
“We set out to bring a new approach to investing in, owning, and operating renewable energy assets and we see our relationship to projects very much over the long term, which is why we continue to have strong conviction in renewable energy despite the current volatility in the market. Increased renewables capacity in Europe in a post subsidy world is good for energy security and for the energy transition.”
Omid Ashrafi, Managing Partner at Newsec Infra, advisor to the sellers said:
“We are delighted to sign the deal with RPC and work alongside the team to enable the construction of this high quality 528 MW portfolio. The Nordics continue to be on the forefront of the energy transition with subsidy-independent large-scale renewable energy projects that require sophistication in both technical, financial and commercial structuring. Our advisory scope has in this deal spanned beyond renewable energy M&A to also commercial and technical optimization during the past two years of development. We are very excited to follow RPC’s continued journey toward the successful construction and operation of this important project.”
Notes to Editors
Press office contact: Lizzy Roberts: lroberts@seahorseenvironmental.co.uk 07814730090
Scale of today’s announcement
- The ready-to-build development of onshore wind projects located in Sweden’s Northern Sundsvall, SE2 power price zone.
- The project locations are as follows:
- Knäsjöberget, in the Sollefteå municipality
- Sörlidberget, in the Kramfors and Sollefteå municipalities
- Vitberget, in the Kramfors municipality
- Storhöjden, in the Kramfors municipality
RPC deals to date
RPC in February made its first investment in Sweden by acquiring a 146MW onshore wind project. RPC’s first investment as a company was in January 2021 with the acquisition of three onshore wind farm projects in Finland with a combined capacity of 171 MW, a transaction valued at €245 million.
Renewable Power Capital
Renewable Power Capital is a pan-European renewable energy investment platform established in 2020, backed by CPP Investments. Renewable Power Capital is registered in the United Kingdom, with headquarters in London. We invest in the development, construction, and long-term ownership of solar, onshore wind and battery storage projects, enabling the energy transition and driving stable long-term, risk-adjusted returns. Our flexible mandate allows us to structure investments that recognize the changing market dynamics in Europe and to develop innovate solutions for managing development, construction, and merchant investments.
For more information, please visit www.renewablepowercapital.com
Newsec Infra
Newsec Infra have advised on more than 65 closed renewable energy deals at a value of approximately EUR 9 billion. These include some of the key landmark investments, offtake strategies and innovative project financings, enabling the market entry of influential market participants to the Nordics during the past 15 years.
For more information, please visit www.newsecinfra.com
[Update] CPP Investments also put out a press release on this deal:
- Renewable Power Capital (RPC) significantly expands presence in the Swedish market with acquisition of 528MW onshore wind cluster
- CPP Investments commits approximately €800 million to support RPC’s most significant deal to date.
- RPC forms a core part of CPP Investments’ multi-billion Sustainable Energies strategy, targeting solar, onshore wind and battery storage opportunities across Europe
Toronto, Canada [June 06, 2022] – Canada Pension Plan Investment Board (CPP Investments) has committed a further €800 million to Renewable Power Capital Limited (RPC), in support of RPC’s largest investment to date which covers a cluster of four onshore wind sites in Sweden. The latest financial commitment will support the costs of acquisition as well as provide the capital required for construction and project completion.
The latest investment will more than double RPC’s onshore wind portfolio from 317MW to 845MW across Sweden and Finland, in addition to a nearly 4GW solar PV pipeline in Spain. The four new sites are expected to generate power ready for export to grid in Q4 2025.
RPC will be responsible for completing the procurement and overseeing the construction management of the projects, bringing to bear its increasing industrial capabilities as it seeks to partner with leading equipment manufacturers and construction companies. Consistent with recent investments, RPC has used its competitive and flexible approach to financing, commercialization and risk management to complete the transaction and will optimize the power contracting and debt financing structure for the sites post-acquisition.
“RPC continues to identify new opportunities to expand its footprint across its core target markets and deliver on the long-term strategy to invest in post subsidy renewable power and storage infrastructure across Europe,” said Bruce Hogg, Managing Director, Head of Sustainable Energies, CPP Investments.
“We established this business with deep capabilities and flexible capital, and we continue to support the business with additional long-term financial support to invest in attractive renewables opportunities.”
RPC was launched by CPP Investments in December 2020.
This is a significant deal for Renewable Power Capital, a pan-European renewable energy investment platform company backed by CPP Investments and established in December 2020.
In a landmark deal, it has has acquired a 528MW cluster of ready-to-build onshore wind farms in Sweden worth €800m.
The wind farms are located in the Kramfors and Sollefteå municipalities and are expected to power 182,000 homes after their commissioning.
Of particular interest is what Newsec Infra managing partner Omid Ashrafi said: “The Nordics continue to be on the forefront of the energy transition with subsidy-independent large-scale renewable energy projects that require sophistication in both technical, financial and commercial structuring.”
I also note what Bob Psaradellis, CEO, Renewable Power Capital said:
“We are very excited about this deal. It demonstrates not only our ability to invest at scale in European renewables but also showcases our rapidly growing commercial and industrial capabilities across power markets, debt financing, construction management, and procurement.
“Today marks a landmark moment, and the biggest deal to date for RPC, but it also forms part of a long-term strategy to invest in post subsidy renewable power and storage infrastructure across Europe.
“We set out to bring a new approach to investing in, owning, and operating renewable energy assets and we see our relationship to projects very much over the long term, which is why we continue to have strong conviction in renewable energy despite the current volatility in the market. Increased renewables capacity in Europe in a post subsidy world is good for energy security and for the energy transition.”
With this platform, CPP Investments is forging ahead, investing in scale in post-subsidy renewable power and storage in projects across Europe.
It is also worth noting Renewable Power Capital will handle the procurement and supervision of the construction of the projects, showcasing its rapidly growing commercial and industrial capabilities across power markets, debt financing, construction management, and procurement.
Owning a platform company like RPC with its deep expertise is critical for CPP Investments as it looks to scale into these renewable projects across Europe.
It's not doing this through a fund doling out big fees, it's doing it through a platform company it owns and is backing with long-term capital.
RPC is building a scalable and diversified pan-European platform, targeting development, ready-to-build, and operating assets and it's growing fast.
There is some development risk with these ready-to-build onshore wind farms in Sweden but the returns will be better over the long run and with a seasoned team, RPC knows what it's doing.
Once completed, the four new sites are expected to generate power ready for export to grid in Q4 2025.
That is phenomenal and with the war in Ukraine still raging on, Europe needs many more projects like this to slowly but surely assert its energy independence (it also needs to invest more in nuclear energy).
RPC CEO Bob Psaradellis is right: "Increased renewables capacity in Europe in a post subsidy world is good for energy security and for the energy transition.”
Lastly, recall back in March, CPP Investments announced its support for Renewable Power Capital’s new investments in European onshore renewables.
I discussed this here and am a firm believer in the immense potential of this platform and think it's a great investment for CPP Investments' Sustainable Energy Group headed by Bruce Hogg.
The last word goes to Bill Rogers, Head of Europe and Asia, Sustainable Energy Group at CPP Investments who posted this on LinkedIn: "Huge congratulations to the RPC team on this important landmark deal, continuing to prove out our investment thesis and consolidating RPC's role as a partner of choice for European developers in accelerating Europe's energy transition."
Below, in Sweden, most of the electricity generated is fossil-free, and wind power is the fastest-growing energy source. But it is not enough to only increase renewable energy production. The use of energy needs to be smarter and more efficient.
Also, in October 2021, the Swedish BayWa r.e. team celebrated the inauguration of the 94.6 Lyngsåsa wind farm in Southern Sweden – the largest BayWa r.e. has built in Europe to this day - together with the wind farm’s owners from Swiss sustainable fund manager SUSI Partners.
The Nordics are way ahead of us when it comes to developing massive renewable energy projects. We can learn a lot from them.
At least CPP Investments is investing in these projects through its pan-European platform, RPC, and this will benefit all Canadians over the long run.
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