Finnish energy company Ilmatar has begun the construction of four wind facilities in Finland after securing €135m in financing from AIP Management.
The wind farms will have a combined capacity of 131.8MW and will require an estimated total investment of €200m.
AIP managing partner Kasper Hansen said: “We are very pleased to embark on a strong partnership with Ilmatar, an experienced and local independent power producer.
“Finland is an attractive market for our flexible financing instrument because the country has a low-risk profile, the power market fundamentals are strong, and you can get renewables projects off the ground without subsidies.”
Construction works will begin this month, with the four projects expected to come online in the first quarter of 2024.
Once operational, the wind farms will have the capacity to generate nearly 440GWh of clean energy a year, which will be enough to meet the power needs of 100,000 households.
Ilmatar CEO Juha Sarsama said: “The new partnership with AIP supports Ilmatar’s growth journey towards becoming a leading Nordic independent power producer (IPP).
“The flexible financing method allows us to implement our IPP strategy because it diversifies our merchant risk and gives us an opportunity to implement our hedging strategy more comprehensively.”
Vestas will deliver wind turbines for the four projects and be responsible for installing, commissioning and servicing the turbines.
The company received the contract for the turbines last month.
Ilmatar will operate and retain ownership of the four wind farms once they are operational.
Based in Helsinki, Ilmatar currently has 16 wind farms in project development across 20 municipalities in Finland.
These wind farms consist of 262 wind turbines and have a total capacity of 1,700MW, which accounts for around half of the country’s total installed wind power capacity.