VATTENFALL AND INSURANCE COMPANY BUILD WIND POWER TOGETHER

Sweden The insurance company Skandia is buying into four of Vattenfall’s wind power projects in Sweden, investing SEK 1 billion in the wind farms. This agreement means that Vattenfall can double the impact of its investments in wind power.

This is the first time that a Swedish insurance company has directly invested in new Swedish wind energy and the first time that Vattenfall has accepted an investment partner in Sweden. “This joint investment with Skandia means that Vattenfall can more than double growth within renewables. It’s good for our respective customers and for Sweden,” says Magnus Hall, Vattenfall’s CEO and President.             

The cooperation with Skandia is regarded as the first of many joint ventures in Sweden. Vattenfall will invest SEK 10 billion in wind energy in the next five years and by accepting partners, the funds can be reinvested in more wind farms.

At the moment, the four wind farms in question are Hjuleberg and Högabjär-Kärsås in Falkenberg municipality, Höge Väg in Kristianstad municipality and Juktan in Sorsele municipality. Hjuleberg has been in operation since May 2014 and will be transferred to a jointly owned company on 1 January 2015. The other three are ready to begin construction and will be finished and ready to transfer to the jointly owned company by the first quarter of 2016. The total capacity of the wind farms is 141 MW.

Skandia has been investing in infrastructure for some time, but this is the first time the Swedish banking and insurance company has invested in wind energy.

“Infrastructure investments provide stable and long-term returns for our investors and this investment is especially exciting because it also facilitates sustainable, long-term energy solutions. Furthermore, Vattenfall is a strong operational partner and wind energy is an area with good growth,” says Bengt-Åke Fagerman, CEO of Skandia.

This is the first time that Vattenfall has involved external partners on this scale in Sweden. However, there are similar partnerships in other markets. In Germany, Vattenfall collaborates with the municipal Statwerke München to run the offshore wind farms Dan Tysk and Sandbank.

The jointly owned company that has now been set up is owned equally by Skandia and Vattenfall and the wind farms will be built and run by Vattenfall. The companies are investing a total of SEK 2 billion in the joint venture.

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