Greencoat Renewables PLC (LSE:GRP) said it agreed to buy a 134.4 megawatt (MW) wind farm in Sweden from Enercon on a forward sale basis.
The Ersträsk North wind farm in Norbotten county is currently under construction and is expected to be fully commissioned in the fourth quarter of 2023, Greencoat said in a statement.
This is the group’s second acquisition in Norbotten after it bought the Ersträsk South wind farm in October 2021. The deal will increase Greencoat's overall capacity on the site to 235MW.
Once the wind farm is operational, Enercon will provide long-term operations and maintenance services. Ersträsk North will initially operate as a merchant asset but has the flexibility in the future to contract the electricity produced via a corporate PPA, the company noted.
“Sweden is becoming a major hub for green energy, with the combination of low-cost generation and a number of attractive routes to market,” commented Paul O'Donnell, partner at investment manager Greencoat Capital.
“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."