Macquarie’s specialist green energy investment business is funding a €270m Swedish onshore wind farm project backed by a long-term power purchase agreement.

Green Investment Group (GIG) said it has commercialised, structured and financed the 235MW Överturingen project through development to financial close.

The project, which was developed in partnership with SCA Energy (SCA), will comprise 56 Siemens Gamesa 4.2MW turbines.  GIG will own 100% of the equity in the project.

GIG said the project is being backed by a 29-year fixed-volume power purchase agreement with aluminium and hydroelectric power company Norsk Hydro.

Siemens Gamesa will provide operations and maintenance services to the project through a 25-year agreement.

The main construction at the project site is scheduled to commence imminently and is expected to be completed by December 2019, it said.

Ed Northam, the head of GIG in Europe, said: The Överturingen project demonstrates our capability as a development partner, successfully bringing permitted projects forward to financial close.

“By working closely with SCA, Siemens Gamesa and Norsk Hydro, we were able to establish the partnerships needed to convert a development opportunity into a market-leading project under construction.”

Mark Dooley, the global head of green energy for Macquarie Capital and the Green Investment Group, said: ”This project is the latest to utilise a new investment model – developing new projects by working with companies who want to buy renewable energy directly.

“This model provides the secure revenues needed to finance renewable energy assets with less and less reliance on public subsidy. It follows similarly structured GIG and Macquarie Capital projects such as Markbygden Ett in Sweden, Canadian Breaks in the US and Lal Lal and Murra Warra in Australia.”

Mikael Källgren, the president of SCA’s renewable energy business, said: “We have developed this project together with Turinge Energi AB. We’re glad that the project now will be realised by a strong and committed team of partners.

“The demand for renewable energy is growing and we’re glad to contribute by more green electricity produced on SCA land, in line with our sustainability ambitions.”

Ricardo Chocarro, the CEO of Onshore at Siemens Gamesa Renewable Energy, said: “Our technology perfectly meets the site and project-specific requirements. At the same time, this project demonstrates the attractiveness of wind energy for the capital markets, investors and communities.”

Norsk Hydro’s executive vice president for Energy, Arvid Moss, said: “Having partnered with GIG also in 2017 on the Markbygden wind power project, Europe’s largest wind power project, Hydro is happy to announce yet another cooperation with GIG.

“Using renewable energy in our aluminium production is a core strategy of Hydro, and the main reason for our metal’s carbon footprint being among the smallest in the global aluminium industry.”

GIG (formerly the Green Investment Bank) was acquired last year by a Macquarie-led consortium from the UK government for £2.3bn (€2.57bn).