Norwegian renewable energy operator Aneo has signed an agreement with KGAL Investment Management to acquire the 130MW Backhammar wind farm in Sweden.

The strategic move is part of the company’s long-term growth plan to enhance the geographic diversification of its power production throughout the Nordic region.

Located in the Kristinehamn municipality (SE3) of southern Sweden, the Backhammar wind farm is equipped with 31 Vestas wind turbines and has been operational since 2020.

Most of the electricity generated by the facility is being supplied to an American technology group under a ten-year power purchase agreement (PPA).

Backhammar strengthens Aneo’s annual production by adding 355 gigawatt hours (GWh).

The acquisition will bring 30% of the company’s total wind power output to SE3, a region facing the highest consumption needs and power shortages.

Aneo CEO Gunnar Hovland stated: “We have a strong belief in the long-term development of the Nordic power market.

“With this acquisition, we are strengthening our position and taking another step toward building a solid and profitable renewable energy portfolio – while also improving our geographic balance.”

The sale comes six years after KGAL acquired the asset through its ESPF 4 fund and reflects a successful implementation of its Buy, Build, Sell strategy.

KGAL sustainable infrastructure portfolio management head Andreas Ochsenkühn stated: “This Swedish wind farm was KGAL ESPF 4’s first major commitment and was made possible by co-investment from a fund investor.

“The successful structuring of a viable contractual framework, the implementation of a PPA tender process and the securing of long-term debt financing on competitive terms laid the foundation for the project’s success.”

Newsec Energy Transition provided financial advisory services to KGAL for this transaction.