Lycksele Wind Farm Holding

Towards a sustainable society.

Investment date:

December 2024

Country:

Sweden

Sector:

Renewable electricity generation

Polhem Infra and Prime Capital partner to invest in 265 MW wind portfolio in Lycksele, Sweden

Polhem Infra has entered into a partnership agreement with funds managed by Prime Capital AG for the construction of a 265 MW wind farm in Lycksele.

Following the partnership agreement, construction and planning for the Fjällberg, Vinliden and Hornmyran wind farms is now underway with planned commissioning in 2027. Polhem Infra and Prime’s investment of approximately EUR 420 million is expected to bring a total of approximately 1 TWh of new renewable electricity generation to Sweden from 2027. This is equivalent to the consumption of approximately 100,000 households and will provide renewable energy to enable, among other things, the industrial energy transition underway in northern Sweden.

Polhem Infra and Prime Capital major wind portfolio investment to drive the Nordic energy transition

The project also includes a grid company that will connect the wind farms to the regional grid through a new substation and a 70 km new 170 kV overhead line. Polhem Infra is acquiring 49% of the portfolio and will invest in it together with funds managed by Prime Capital AG (“Prime Capital”).

The wind farms will have state-of-the-art turbines specifically designed for the northern region and local environment with high local wind speeds estimated to have a capacity factor north of 40%. The project will now be pursued at the early stage of development by Prime Capital and RES with the aim of minimizing the cost of energy through efficient construction and operation and ensuring stable long-term revenues and financing.

Polhem Infra and Prime Capital’s co-investment in this large-scale onshore wind portfolio shows that Swedish wind power still has a significant role to play in the future Nordic energy market and as a key factor in the energy transition towards net zero.

Anna Elmfeldt, CEO of Polhem Infra commented:

“We are very proud and excited to partner with Prime Capital in this portfolio that enables much needed large-scale renewable energy production for the Swedish energy transition. The demand for electricity will increase in the coming decades and projects like this are needed. It shows that there are very good renewable energy projects in Sweden that can provide attractive long-term returns.

This portfolio provides a welcome addition of cost-effective renewable energy production and another step in fulfilling Polhem Infra’s dual mission of investing in long-term assets that generate both good risk-adjusted returns and provide critical infrastructure.”

Dr Mathias Bimberg, Head of Infrastructure at Prime Capital commented:

“We have been one of the largest and most active investors in renewable energy and the energy transition in the Nordics over the past few years with an investor base that primarily comes from outside the Nordics. This marks the last construction project for our Prime Green Energy Infrastructure Fund I. We will continue our activities through our second fund with an increased focus on eFuels supporting Nordic economies transforming into hydrogen economies. I am proud and very excited about the new partnership with Polhem Infra’s team for Lycksele and for the continued joint development of this high-quality portfolio.”