Metsähallitus, the Finnish state-owned forestry and land management company, has agreed to transfer project rights for three wind power developments to Finnish renewable energy developer Nordic Generation.
The three projects, located in Simo, Kajaani, and Pyhäntä, will add up to 800 MW of clean, green power to Finland’s energy grid, in a move to support the government’s efforts to reach carbon neutrality by 2035.
Once operational, the wind farms will generate enough clean electricity to power more than 100 000 Finnish households.
“This deal demonstrates that there is a demand for good wind power projects and that the Finnish energy market is also attractive at the international level,” says Markku Tuominen, Director of Wind Energy at Metsähallitus.
“There is confidence in the market that the demand for clean energy will continue to grow in Finland. One third of Finland’s total energy consumption is still based on fossil fuels. If Finland wants to achieve its carbon neutrality target, we must continue to increase the deployment of renewable energy projects and add more green energy into the mix,” states Tuominen.
“The projects are an excellent fit with our strategy and nicely complement our project portfolio, which we are developing to meet growing electricity demand in Finland. The best way to respond to demand is to increase renewable energy production”, says Marko Salmela, Managing Director of Nordic Generation.
“Nordic Generation’s implementation capability and responsible practices were decisive factors in our decision to proceed with the sale,” says Tuominen.
Nordic Generation is backed by the Octopus Energy Renewable Infrastructure Trust plc (ORIT) and Sky – two funds managed by Octopus Energy Generation, one of Europe’s leading investors in renewable energy projects.
Metsähallitus to continue developing the projects
Metsähallitus and Nordic Generation have agreed that Metsähallitus will continue to develop the projects until the permits enter into effect. At Konnunsuo Metsähallitus and Neova Group subsidiary Vapo Terra Oy are continuing their joint development. Metsähallitus and Nordic Generation are also working on plans to engage local communities and will update accordingly in the future.
“This will enable us to optimise projects in accordance with the buyer’s goals. Nordic Generation has been very interested in the local impacts of the projects, especially with regard to the landscape,” explains Tuominen.
Wind power projects support municipalities’ climate targets and generate an average of EUR 35,000 in property tax revenue from the wind turbine each year.
EY-Parthenon assisted the transaction as the financial advisor and Hannes Snellman as the legal advisor.
Source: Metsähallitus
