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Swedish wind farms secured by EKF

​Two windfarms in Sweden expected to be completed in 2019, are guaranteed by EKF Denmark´s Export Credit Agency
Sweden is already far ahead of its goal of ensuring that by 2040, all Swedish energy consumption will be based on renewable energy sources. The two wind farms going by the name “Project Cloud” are the latest additions.

The wind farms will supply power to the aluminium industry based on a fixed Power Purchase Agreement covering 29 years.
Siemens Gamesa Renewable Energy in Denmark and Danish sub-suppliers will deliver almost 50 pct. of the supplies to the wind farms. Among others, the huge nacelles including generators and the blades as well as part of the transportation of the materials to Sweden.

The number of Danish jobs involved in the project is precisely why EKF has guaranteed the majority part of the financing of the wind farms, the total budget of which amounts to
approximately EUR 270 million.

”Our guarantee covers 75 pct. of the risk for up to 18 years after the completion of the project. The financing has required some extra efforts as the structure of the Power Purchase Agreement in the project is more complex than what we have been used to”, says Christian Ølgaard, Deputy CEO at EKF.
​EKF is one of the top players within the field of public financing of wind energy as we have helped to finance wind projects worth more than DKK 100 billion all over the world for the past 10 years.
The basis of the two new Swedish wind farms is a Power Purchase Agreement with the Norwegian
company Norske Hydro Energi.  Hydro produces aluminium, a process requiring an extremely large amount of electricity.
What is special about the agreement is that the wind farms are committed to supply a certain minimum amount of power at a fixed price every hour for the next 29 years - with or without wind. This makes the agreement the longest Power Purchase Agreement in the entire world.
”It is common for large corporates to enter agreements regarding purchase of renewable energy at a fixed rate. However, this agreement means that the company behind the wind farms have to purchase electricity at market price in order to deliver the agreed amount of electricity to Norske Hydro Energi on windless days. This entails a higher risk which we had to take into consideration”, Christian Ølgaard explains.
Some of the world´s largest players within the field are behind the project. The sponsor is the Australian investment bank Macquarie who provides the equity, whereas the German export bank Kfw Ipex Bank and the French bank Credit Agricole finance the debt together with EKF. Siemens Gamesa Renewable Energy supplies 56 wind
Turbines. Each of them can produce up to 4.2 MW green energy.
The two wind farms will be located near the cities of Sundsvall and Östersund in the north-western part of Sweden.
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