Eolus Vind has signed agreement with KGAL to sell a 130MW Bäckhammar wind farm located in Sweden, for €131m.

Eolus Vind

Image: Eolus Vind to sell Swedish wind farm in KGAL. Photo: Courtesy of Dan Wenger/FreeImages.com.

The transaction of Eolus Vind and KGAL covers all the shares in the project company that owns rights for the wind farm to be located in the municipalities of Kristinehamn and Degerfors.

The Bäckhammar wind farm will be acquired for the KGAL ESPF 4 renewable energy fund, which invests mainly in wind, solar and hydroelectric power in Europe.

It will feature a total of 31 turbines supplied by Vestas, with 22 of V136 4.2MW turbines and 9 of V150 4.2MW turbines.

The Bäckhammar wind farm is expected to be delivered as a turnkey project to KGAL ESPF 4, a Fund advised by KGAL and their co-investor Kempen Private Markets Fund in August 2020.

As part of the sale agreement, Eolus has been given the responsibility to provide technical, operational and administrative services and to maximize outcome and production from the wind farm.

Eolus CEO Per Witalisson said: “We look forward to providing KGAL with yet another project from Eolus high quality project portfolio. This is the fifth wind farm we have been entrusted to provide KGAL with. We are very pleased with the trust that KGAL once again puts in Eolus.”

As per KGAL, Sweden is an attractive growth market for onshore wind in Europe. This is the fifth wind farm that was acquired by KGAL in Sweden and has increased its total onshore wind capacity in Europe by 780MW.

Construction on Bäckhammar wind farm is scheduled to begin this year, with grid connection expected in mid-2020.

A majority of annual power production of the wind farm is planned to be sold a large offtaker through a long-term power supply agreement.

KGAL investment management managing director Michael Ebner said: “We are delighted to have acquired another wind farm from our long-standing partner Eolus equipped with state of the art turbines from Vestas.

“The investment strengthens our footprint in the Scandinavian renewables market and levers the co-investment structure we have implemented.”