The Taaleri SolarWind II fund has, together with Lithuanian closed-end investment company JSC Atsinaujinancios energetikos investicijos (AIE), managed by Lords LB Asset Management, a leading investment management firm in the Baltics, acquired 100 percent ownership of the Anykščiai, Rokiškis, and Jonava wind farms from European Energy.
AIE has acquired three wind projects totalling 186 MW in the home market under a deal with Denmark’s European Energy A/S. The three wind farms have entered into long-term power purchase agreements (PPAs) for a substantial proportion of the electricity generated with Axpo Nordic, which is part of the Axpo Group, the largest energy company in Switzerland. Long-term project financing for these investments has been provided by the Danish investment manager AIP Management on behalf of its investors.
The Anykščiai and Rokiškis wind farms are located in the counties of Utena and Panevėžys, around 100 km and 150 km north of the city of Vilnius respectively. The Jonava wind farm is located in the county of Kaunas, approximately 100 km northeast of the city of Vilnius.
With a total of 34 General Electric 5.5 MW turbines, the wind farms will have a combined installed capacity of 186 MW and the combined annual production of electricity will be approximately 560 GWh. The wind farms will together produce enough electricity to supply around 270 000 households and will offset the equivalent of 170 000 tonnes of carbon dioxide during each year of operation.
Construction works on the Anykščiai, Jonava and Rokiškis wind farms commenced in January, March, and July 2021 respectively. All three wind farms are expected to be fully operational in 2022 with the Anykščiai wind farm reaching its commercial operations date by the end of the first quarter, the Jonava wind farm by the end of the second quarter and the Rokiškis wind farm by the end of the fourth quarter.
The wind farms were developed by European Energy, who will also provide Construction Management services during the construction phase as well as Technical and Commercial Management services in the operational phase. General Electric will be responsible for maintaining the turbines under a 30-year contract.
“We are delighted with this deal, which brings the number of investments from the Taaleri SolarWind II fund to ten and represents its entry into a new market. Lithuania has excellent wind resources and a clear plan to increase the share of renewable energy in its power generation mix. Our joint venture with Lords LB paves the way for further investments in the Baltics and we look forward to continuing to build on this partnership,” said Taaleri Energia’s Managing Director, Kai Rintala.
“We are delighted to contribute to the region’s energy transition and security of supply by providing early-stage developers with the access to institutional capital. We believe that our joint venture with Taaleri Energia will be a significant driver for renewable energy capacity development in the region. Unlocking the renewable energy potential in the Baltics will lead to tremendous value creation for both the region and for our investors,” added Atsinaujinančios Energetikos investicijos’ Manager, Tomas Milašauskas.
“We are excited to complete this investment in three onshore wind projects in Lithuania, which is an interesting new market for us with significant demand for renewable energy sources and also well-connected to the NordPool Nordic power market. We are delighted to partner with Lords LB and extend our partnership with Taaleri Energia. We are pleased to see Danish developer European Energy continuing to be play an important role in the projects,” noted Kasper Hansen, Managing Partner of AIP.
Axpo, speeding up the expansion of wind energy in the Baltic area
Axpo expands its business activities in the field of long-term power purchase agreements (PPAs) for renewable energies to the Baltic countries by signing its first ever PPA in Lithuania. Under the agreement with the Taaleri SolarWind II fund, Axpo Nordic will hedge parts of the electricity generated by the Anykščiai, Rokiškis, and Jonava wind farms currently under construction. The transaction supports the roll-out of wind energy in Lithuania and marks a major milestone for Axpo Nordic’s expansion plans in the Baltic region.
After having signed numerous PPAs for wind farms in Norway, Sweden, and Finland in the past 15 years, Axpo Nordic has now done the next step by extending these business activities to the Baltic markets where it has been present for almost a decade as an energy supplier for industrial companies.
In concrete terms, Axpo will hedge parts of the energy produced by three onshore wind farms in Lithuania with a combined capacity of 186 MW.
“Baltic countries have a lot of potential especially for wind energy, and this is exactly where we can bring in our comprehensive experience and know-how in marketing renewable energies. By signing PPAs for projects underway, we can speed up the expansion of wind energy in the Baltic area and help push the energy transition in the region. This PPA marks a major milestone in this regard, and in the history of our company,” Kjetil Holm, Head Origination at Axpo Nordic, mentioned.
Olli Hagqvist, Investment Manager at Taaleri Energia, added: “We are delighted with this deal, which brings the number of investments from the Taaleri SolarWind II fund to ten and represents its entry into a new market. This transaction marks the beginning of a partnership with Taaleri Energia and Axpo Nordic. As we plan to invest further in the Baltics, our relationship with Axpo Nordic is key in securing investments with high standard PPAs.”
About the Taaleri SolarWind II fund
The Taaleri SolarWind II fund invests in utility-scale wind and solar assets. The fund is investing in a diversified portfolio of ready-to-build assets in five key markets: the Nordics & Baltics, Poland, South-East Europe, Iberia, and Texas. It is estimated that the fund will finance approximately 850 MW of renewable energy capacity, which will offset over 1 million tonnes of CO2 annually throughout the 25-year lifetime of the assets.
The fund’s investors include the European Investment Bank, Ilmarinen Mutual Pension Insurance Company, Varma Mutual Pension Insurance Company, the European Bank for Reconstruction and Development, Obligo Global Infrastuktur II Fund, the Finnish Church Pension Fund, the Nordic Environment Finance Corporation, the Taaleri Group, the Taaleri Energia team and a wide range of pension funds, foundations, endowments, and family offices.
About Taaleri Energia
Taaleri Energia is a renewable energy developer and fund manager. With 40 professionals, Taaleri Energia has one of the largest dedicated wind and solar investment teams in Europe. The team is currently investing its fifth renewable energy fund, the Taaleri SolarWind II fund, and has a 2.8 GW wind and solar portfolio in Europe, the US, and the Middle East.
Taaleri Energia is ranked by Preqin as one of the most consistent top performing infrastructure fund managers.
Taaleri Energia is part of the Taaleri Group, which is listed on the Nasdaq Helsinki stock exchange.
About Axpo Nordic
Axpo Nordic is part of the Axpo Group, the largest energy company in Switzerland. The wholly owned subsidiary was founded in 2003 for the markets in Northern Europe and the Baltic region. The focus of its business activities in the Nordics is on long-term power supply and purchase agreements. In addition to its PPA business, Axpo Nordic develops bespoke products and associated services for its customers, such as retailers, industry, and producers. The business activities in the Nordics are part of Axpo’s strategy to grow its international presence and business specializing in tailor-made energy solutions.
Axpo is Switzerland’s largest producer of renewable energy and an international leader in energy trading and the marketing of solar and wind power. 5,000 employees combine experience and expertise with a passion for innovation. Axpo develops innovative energy solutions for its customers based on state-of-the-art technologies in 40 countries in Europe, North America, and Asia.