Greencoat doubles down on investment in Sweden

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Greencoat doubles down on investment in Sweden via IrishTimesBiz

`Sweden is becoming a major hub for green energy with the combination of low-cost generation and a number of attractive routes to market.' Photograph: iStockGreencoat Renewables has bought another wind farm under construction in Sweden for a price reported to be around €135 million.

The renewable infrastructure group is buying the Erstrask North wind farm from Enercon, which will continue to manage the 134.4 megawatt facility once in comes online, currently projected to be in the fourth quarter of next year. It doubles the group’s Swedish footprint: it previously acquired the 100MW Erstrask South facility in 2021.

The company did not put a price on the deal but Davy analysts Jack O’Halloran and Michael Mitchell said a price of €135 million was “consistent with that paid for Erstrask South and the broader low-cost Swedish wind market”. “Sweden is becoming a major hub for green energy, with the combination of low-cost generation and a number of attractive routes to market.,” said Greencoat Capital partner Paul O’Donnell. “As the renewable generation market continues to develop, we expect to see greater opportunity in the unsubsidised renewables market and believe Greencoat Renewables is well positioned to benefit both across mainland Europe and in Ireland.

Goodbody analyst Gerry Hennigan said Greencoat had now made seven acquisitions since its oversubscribed €281.5 million placing in April — one in Spain, one in Germany, four in France and now this one in Sweden.

 

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