Target Information

Infracapital is set to acquire 100% of two onshore wind projects, which will comprise a total of 14 turbines with an estimated annual production output of around 206 GWh. This energy production is sufficient to supply approximately 120,000 homes. The project will continue to be managed by OX2, which has secured a customized engineering, procurement, and construction (EPC) contract, ensuring its oversight during both the construction and operational phases. Construction is slated to begin in the Autumn of 2019, with commercial operations expected to launch in the fourth quarter of 2021.

Industry Overview in Finland

The renewable energy sector in Finland is progressively expanding, reflecting a comprehensive commitment to sustainable practices. Currently, renewable sources account for approximately 40% of overall energy consumption in the country. The Finnish Government has laid out an ambitious National Energy and Climate Strategy aimed at increasing the share of renewables to over 50% by the end of the 2020s. This strategic vision highlights the government's focus on developing a robust and sustainable energy infrastructure.

Finland is characterized by an efficient Nordic energy market that promotes the adoption of clean energy solutions. The growing emphasis on wind energy in the region is evident, with numerous projects either underway or in the planning phase. Such initiatives play a crucial role in achieving national targets while also providing a platform for economic development through job creation and technological innovation.

In addition, the Finnish market benefits from its geographical advantages, making it suitable for wind energy projects. The country's climate and wind conditions are favorable for the development of wind farms, which have become a key component of the nation’s strategy to enhance energy security and combat climate change.

The flourishing landscape for renewable energy investments offers significant opportunities for both local and international investors. Recent trends suggest a heightened interest in greenfield projects, highlighting the importance of developing new infrastructure to ensure Finland meets its energy objectives.

Rationale Behind the Deal

This acquisition represents a pivotal move towards addressing the requirement for sustainable energy solutions in Finland. By investing in these onshore wind projects, Infracapital aims to contribute meaningfully to the renewable energy landscape, aligning with the national goals to bolster renewable energy consumption. Infracapital Greenfield Partners Fund I LP's strategy focuses on the delivery of essential infrastructure projects that support long-term economic growth, making this investment a strategic fit for the fund.

Furthermore, partnering with OX2, a recognized developer in the region with extensive expertise in wind power, enhances the project's viability and positions it well within the market. OX2's track record of successfully developing wind farms adds credibility and brings valuable experience to the collaboration.

Investor Information

Infracapital is a well-established infrastructure investor with a strong portfolio of projects across Europe. The firm leverages its extensive experience in developing and managing sustainable infrastructure to deliver value to its investors and stakeholders. With this deal, Infracapital reinforces its commitment to the green energy sector, particularly through investments that contribute to environmental sustainability.

By entering the Finnish market through IGP I, Infracapital demonstrates its proactive approach towards exploring emerging opportunities in renewable energy. The firm’s focus on greenfield projects highlights its ambition to lead the way in infrastructure investments that yield both financial returns and positive social impacts.

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The deal between Infracapital and OX2 marks a significant step forward in enhancing the renewable energy landscape in Finland. From an investment perspective, this acquisition appears to be a prudent choice, as it aligns with global trends toward sustainable energy solutions. The growing demand for renewable energy positions this project favorably within the market, making it a noteworthy investment opportunity.

Considering the Finnish Government's ambitious targets for renewable energy and the established reputation of OX2 in wind project development, the prospects for this deal seem promising. As the country pushes for increased reliance on renewable sources, events such as this acquisition could catalyze further investments and innovations in the sector.

Moreover, the ability to deliver electricity at competitive prices without dependence on subsidies signals a sustainable business model, further enhancing the attractiveness of this investment. Sustainable operations combined with market efficiency demonstrate the potential for long-term value generation for Infracapital and its investors.

Overall, this deal not only contributes to Finland's energy objectives but also reflects a sound investment strategy. As the renewable energy market continues to evolve, Infracapital's involvement in this project positions it strategically to capitalize on emerging opportunities in the Nordic region.

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