Target Information

SUSI Partners has sold the 95 MW Lyngsåsa onshore wind farm located in southern Sweden to Equinor, marking a significant step in the divestment strategy for its SUSI Renewable Energy Fund II. This strategic sale has allowed SUSI to exit 75% of the fund's assets, demonstrating a successful implementation of their investment strategy.

Originally acquired by SUSI in 2019 at the ready-to-build stage, the Lyngsåsa wind farm consists of 22 turbines and produces an average annual output of 311 GWh. This output is sufficient to fulfill the electricity needs of over 60,000 Swedish households, excluding heating requirements. Furthermore, the site has played a crucial role in reducing emissions, contributing to the avoidance of more than 320,000 tonnes of CO2 emissions.

Industry Overview in Sweden

The renewable energy sector in Sweden is flourishing, backed by strong government incentives aimed at achieving sustainability goals. With a commitment to becoming carbon neutral by 2045, the Swedish government has established a robust regulatory framework that supports the expansion of renewable energy projects, particularly in onshore wind and solar sectors.

Onshore wind energy has emerged as one of the most significant sources of renewable energy in Sweden, thanks to the country's extensive land availability and favorable wind conditions. As of 2023, Sweden ranks among the top countries in Europe for installed wind capacity, making it a key player in the European energy transition.

Moreover, the growing investments in renewable technologies and infrastructure development have led to increased job creation in the sector. This transition not only supports local economies but also reinforces Sweden's position as a leader in the sustainable energy landscape in Europe.

Rationale Behind the Deal

This transaction aligns with SUSI Partners' strategic goal of enhancing the sustainability of its investment portfolio while capitalizing on the favorable market conditions for renewable energy assets. By divesting the Lyngsåsa wind farm, SUSI can reinvest the capital into emerging opportunities within the renewable energy market.

The move also reflects increasing confidence in the long-term value of renewable energy assets, especially as governments push for cleaner energy solutions amidst growing climate concerns. The sale to Equinor enables SUSI to further focus on strategic developments and maximize returns for its investors.

Investor Information

SUSI Partners is a Swiss-based private equity firm specializing in investments in renewable energy and sustainable infrastructure projects across Europe. Since its establishment, the firm has been committed to providing responsible investment solutions while supporting the transition to a low-carbon economy. Their focused approach has enabled them to build a diverse portfolio that includes both operational and ready-to-build projects.

Founded in 2014, the SUSI Renewable Energy Fund II (SREF II) has successfully cultivated a strong track record in onshore wind and solar PV investments throughout Europe. This fund has strategically engaged in projects that align with evolving market dynamics, emphasizing the importance of sustainability in infrastructure.

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From an expert perspective, the divestment of the Lyngsåsa wind farm appears to be a prudent investment move for SUSI Partners. With 75% of the fund's assets now exited, the firm can allocate resources towards potentially more lucrative opportunities within the growing renewable energy sector. The strong operational performance of the wind farm, contributing to substantial avoided emissions, underscores its value before the sale.

The sale to Equinor, a major player in the energy sector, indicates a strong vote of confidence in the future of Sweden's renewable energy landscape. This not only benefits SUSI but also enhances Equinor's growing commitment to expanding its renewable energy portfolio, which is crucial in today’s energy climate.

Moreover, the ongoing development of a solar PV plant at the same site adds compelling value to the area, indicating a forward-thinking approach to harnessing renewable resources. Overall, the transaction is seen as a positive strategic decision, reinforcing SUSI's innovative investment practices while benefiting both the environment and the region.

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