SWEDISH PENSION COMPANY NEW PARTNER IN BRITISH WIND FARM

UK Vattenfall is selling 49 per cent of its ownership in the Ormonde offshore wind farm in the Irish Sea to the pension company AMF.

Ormonde is located about ten kilometres outside Barrow-in-Furness in the north west of England. It consists of 30 5MW turbines and was commissioned in 2012.
The Swedish pension company AMF is now buying 49 per cent of the ownership of the wind farm for an undisclosed sum.

”The market has shown great interest in Ormonde. This is primarily because the wind farm is profitable and is considered to have excellent prospects for continued stable profitability. AMF is a serious, long-term investor and we are very pleased with the deal," says Magnus Hall, CEO of Vattenfall.

Releases capital
Magnus Hall recently explained in a debate article that Vattenfall intends to invest more than SEK 50 billion in renewable generation in the next five years.

“The reason we are now bringing a partner into Ormonde is that we need to release capital so that we can invest in renewables. We can’t manage such growth in new generation capacity on our own. It requires additional capital, and that is what we are bringing in now."

Suitable model
In late 2014, the insurance company Skandia invested SEK 1 billion in four of Vattenfall’s wind power projects in Sweden. That was the first time Vattenfall brought in an investment partner in Sweden.

"The partnership strategy has emerged more clearly of late, but it is not actually new for us. We have owned hydro power, nuclear power and heat operations together with others for a long time," says Magnus Hall, who does not exclude Vattenfall bringing in partners in business areas other than hydro power in the future.

"We might well do that. In terms of wind power in particular our strengths are planning, building and running wind farms. Having 100% ownership is not the most important thing. Bringing in partners is a model that suits us."

Energy of the future
Magnus Hall was on site in Paris during parts of the UN’s climate conference that recently ended with a global climate agreement.

”I am absolutely convinced that more and more financial players will be viewing investments in renewables as an important strategic direction. Many of them see the potential of investing in the renewable energy systems of the future." 

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