Renewable Energy M&A: BKW acquires a 125 MW onshore wind portfolio in Sweden from Eolus for $207mn

Deal details: The transaction involves the acquisition of the 79.2 MW Skallberget, 26.4 MW Tjarnas, and 19.1 MW Rosenskog wind farms. The projects are located in price area SE3 in Southern Sweden and are currently in the construction phase. The assets are expected to enter commercial operation by the end of 2023, with power generated already contracted to a major global energy company under a power purchase agreement. Eolus will manage the construction of the assets under a construction management agreement (CMA) with BKW. Additionally, the company will offer long-term technical, operational, and administrative services for the wind farms.

Deal rationale: The investment marks BKW's entry into the Swedish market and supports its strategy to surpass 1 GW of installed capacity by 2026. This move follows their acquisition of six wind projects totaling ~106 MW in France last year. BKW plans to fund its inorganic expansion through various means, including the proceeds from their recently issued $103mn green bond as well as the sale of a 49% stake in a 240 MW wind portfolio to Swiss pension funds, executed under its capital-light strategy. 

For Eolus, the deal represents its third divestment in Sweden this year, following the sale of a 47 MW wind portfolio to Glennmont Partners and the disposal of a 5% interest in the 1 GW Vastvind offshore wind project to the Port of Gothenburg. The company is also continuing with the sale process for a ~93 MW wind portfolio in the country, with a potential deal expected to be completed by the end of the year. The proceeds from these divestments will provide support for Eolus to advance its extensive early-stage pipeline, which amounts to ~11 GW in the country.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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