Danish wind turbine firm Vestas announced Thursday it will help build a 353-MW wind energy project in Sweden.
Vestas will partner with Swedish utility Vattenfall and Danish pension fund PKA on the project. The three will own 40, 30 and 30 percent of the 350 million Euro deal ($413 million in current U.S.), respectively.
“The cost of renewable energy is going down, which is making the market more competitive and creating new opportunities,” Vestas CEO Anders Runevad said in a statement. “With our partners on this project, I believe we have shown our ability to tailor the right solutions and, in doing so, advance our business according to our strategy.”
Vestas will provide 84 V136-4.2 MW turbines to be installed across the Blakliden and Fäbodberget wind parks developed by Vattenfall and located in Åsele and Lycksele Municipality in central Sweden. Blakliden and Fäbodberget wind parks will consist of 50 and 34 turbines respectively.
This is PKA’s first investment in onshore wind after previously helping fund five offshore wind projects.
“The model created for this investment can be copied to other similar investments as we have seen it with our investments in offshore wind parks,” PKA CEO Peter Damgaard said. “We focus on this type of investments because we continue to find interesting opportunities in combining good returns to our members with mitigation of climate change. For us it is good business and common sense, and we therefore don’t expect this to be our last investment in onshore wind.”
The order includes supply and installation of the wind turbines as well as a 25-year service contract. Turbine delivery is expected to begin in first half of 2021 with full commissioning planned for fourth quarter of 2021.
Vestas has provided wind turbines for projects in Texas, Australia, Denmark, Finland and Kenya.