The Renewables Infrastructure Group Limited (LON:TRIG) announced it acquired the Grönhult onshore wind farm in Sweden from Vattenfall for an undisclosed sum.
It is a 67.2-megawatt ready-to-build project located in the southwest of the Scandinavian country expected to become operational at the end of 2022.
Vattenfall, a Swedish utility and a developer of renewables, will manage the construction process scheduled for the second quarter, which will be funded through equity investment rather than with debt.
Once completed, Grönhult is expected to represent 3% of TRIG's portfolio value on a fully committed basis and investments in Sweden will account for 10% of its investments.
This acquisition takes the investment's exposure to construction projects to 6% of the portfolio value.
Grönhult will receive market-based revenues once operational and the Investment Manager will consider a range of power price hedging strategies.
TRIG said the project will benefit from increasing electricity demand through greater electrification of transport and the expansion of energy-intensive industries such as data centres in Stockholm and Gothenburg.