The European Investment Bank (EIB), Mirova and Eolus are co-investing in the construction of the Langmarken onshore wind farm located in Värmland County, Sweden. This is the first EIB project in Sweden under the European Fund for Strategic Investments (EFSI), at the heart of the Juncker Commission’s Investment Plan for Europe.

The EIB and Mirova-Eurofideme 3, a renewable energy fund managed by Mirova, a subsidiary of Natixis fully dedicated to responsible investment, have signed an agreement to acquire the Langmarken wind project. They will own, through a common vehicle, 90% of the shares while Eolus will retain the remaining 10%. Eolus, one of the leading wind power developers in the Nordics, will build and manage this 20 MW ready-to-build wind farm.

The EIB co-investment amounting to up to EUR 16 million is the first renewable energy co-investment made by the EIB through the EFSI and at the same time the first EIB project in Sweden supported under the Investment Plan for Europe. This co-investment will be undertaken and managed by Mirova, following the commitment made by the EIB in the Mirova-Eurofideme 3 fund in 2014 – mobilising capital to achieve a low-carbon economy.

The transaction includes 6 Vestas V126-3.3 MW wind turbines out of a total 8-turbine project. The two remaining turbines have been respectively acquired by the City of Malmö and the local Kalmar County Council. The project is fully permitted and its construction started in January 2016. It will be connected to the national grid through a local substation operated by Kristinehamns Energi AB. Commissioning is targeted for the first quarter of 2017.

Jan Vapaavuori, EIB Vice-President responsible for operations in Sweden:  “We are glad to cooperate with Mirova and support the Langmarken wind project, as it will contribute to the achievement of European and Swedish targets for renewable energy generation and CO2 emissions reduction. This first EIB project in Sweden under the Investment Plan for Europe is only a start of the EFSI rollout in this country, within which we have been developing new financial products aiming to extend the EIB’s risk capacity and market reach.”

Miguel Arias Cañete, European Commissioner for Energy and Climate Action: “I am happy that we now have a concrete project in Sweden that is benefiting from the European Fund for Strategic Investments. The project also contributes to our aims of an Energy Union – to ensure sustainable energy for Europe and its citizens. Sweden is a frontrunner in renewable energy and reduced emissions.”

Raphael Lance, Head of Renewable Funds at Mirova: “We are very proud to have been selected by the EIB for their first co-investment in the renewable energy sector. We believe that the extensive track record of Eolus in developing and building wind farms and the intrinsic quality of the site have been crucial to achieving this investment despite a challenging market environment. It is our opinion that wind power in Sweden is one of the most attractive long-term plays in European renewables. It adds another very competitive asset to Mirova-Eurofideme 3’s portfolio which already comprises six wind, solar and hydro investments, primarily in France and in Sweden."

Per Witalisson, CEO of Eolus: “We are very pleased that Mirova and the EIB have chosen to invest in the wind farm. It shows once again that high-quality projects from Eolus’s portfolio make good investments for long-term investors. We look forward to constructing and operating the wind farm in cooperation with Mirova and the EIB.”

 

Background information:

 

The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2015, EIB financing in Sweden amounted to almost EUR 1.6 billion, with the main focus on projects promoting sustainable development of Swedish cities and research, development and innovation in the industrial sector.

The European Fund for Strategic Investments (EFSI) is an initiative launched jointly by the EIB Group – European Investment Bank and European Investment Fund – and the European Commission to help overcome the current investment gap in the EU by mobilising private financing for strategic investments. EFSI is one of the three pillars of the Investment Plan for Europe that aims to revive investment in strategic projects around Europe to ensure that money reaches the real economy. EFSI should unlock additional investment of at least EUR 315bn over a three-year period.

Eolus Vind AB is one of the leading wind power developers in Sweden. Eolus is active in the whole value chain from development of green field projects to construction and operation of wind farms. Eolus offers attractive and competitive investments in the Nordic and Baltic countries to both local and international investors. Founded in 1990, Eolus has constructed 477 of the approximately 3 100 wind turbines operating in Sweden. The Eolus Group currently owns 54 MW of wind power with yearly production of 133 GWh in renewable electricity. Eolus’s asset management services cover about 300 MW in total.

Mirova offers a global responsible investing approach involving Equities, Fixed Income, General and Renewable Energy Infrastructure, Impact Investing, and Voting and Engagement. It has EUR 6.1 billion in assets under management and EUR 42.9 billion in Voting and Engagement. Its team of some 60 multidisciplinary experts includes specialists in thematic investment management, engineers, financial and environmental experts, social and governance analysts, project financing specialists and experts in solidarity finance.

Natixis is the international corporate, investment, insurance and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 35 million clients spread over two retail banking networks, Banque Populaire and Caisse d’Epargne.  With more than 16 000 employees, Natixis has a number of areas of expertise that are organized into three main business lines: Corporate & Investment Banking, Investment Solutions & Insurance, and Specialized Financial Services. A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-size businesses of Groupe BPCE’s banking networks. (Figures as at 31 December 2015)

 

[1] Investments in infrastructure portfolios are reserved for specific investors, as defined by their respective regulatory documentation. Mirova-Eurofideme 3 has not been authorised by the French Financial Market Authority (“AMF”) nor by any other supervisory authority. The fund is mainly subject to loss of capital risk.