Israel-based renewable energy company Enlight Renewable Energy has signed a series of agreements to acquire and invest in in construction of 113MW wind facility, which is in a ready to build status, in Sweden.

The proposed project named Picasso located in southern Sweden and is expected to include 27 wind turbines with 4.2MW capacity each.

Enlight said that the project has completed all material development processes and the initial construction works are expected to start immediately.

The company expects to complete the financial closing of the project in the fourth quarter of 2019 and start the commercial operation in the first half of 2021.

Enlight to invest £120-124m in the project

In addition, Enlight estimates a total investment of £120-124m in the project, including the agreements for construction, management and acquisition of rights, and the equity required for the project is estimated to be approximately 40%-45% of the total investment.

Half of the electricity produced by the facility is sold by the project company for the first 12 years under a commercial agreement for the sale of electricity, and the balance of production will be sold on the electricity market of northern Europe’s largest electricity market, the Nord Pool.

Enlight CEO Gilad Yavetz said: “The signing of the deal in Sweden is part of a far-reaching strategic move by Enlight to grow its activity in developed markets, in which it is already possible to sell electricity from renewable sources at market prices and without subsidies.

“This deal joins the giant project being developed by Enlight in Spain and additional projects that the company is working on in developed markets.

“We estimate that this activity, together with our operations in Israel and developing markets as well, guarantees Enlight continued accelerated growth, while creating a balanced structure, strengthening diversification between the various sectors of our activity.”

Turbine supplier Vestas has signed the supply and service agreements for the project that includes a guarantee for a lifespan of 30 years for the turbines.

Svevia, a Swedish-based company experienced in infrastructure projects and construction of wind farms, has been contracted for the balance of plant construction.