Enefit Green has now confirmed the completed sale of its Tolpanvaara wind farm in Finland. The company is selling it to TD Greystone Infrastructure Fund for close to €83 million, or approximately $US 96.39 million. This decision is part of the company’s plan to focus on the Polish and Baltic markets. At the same time, we are retreating from our expansion plans in Finland. Prep for the Tolpanvaara wind farm, which came online last year, marks Enefit Green’s first wind farm to reach the Finnish market.
The wind farm lies some 30 km from Pudasjärvi, on land administered by the state agency Metsähallitus. At full build out, it has a prodigious installed capacity of 76 megawatts (MW) and can export 72 MW onto the power grid. Made up of 13 Nordex turbines, it’s expected to produce 250 gigawatt-hours (GWh) of local, cost-effective, renewable electricity each year. Enefit Green’s December 2021 final investment decision was for this project. This was a big leap for the territory in diversifying its renewable energy mix.
Details of the Tolpanvaara Wind Farm
The Tolpanvaara wind farm is remarkable not only for its location but for its stature. The project is situated in what’s called a “wind energy” hotspot area for wind generation. Yet it has been crafted to have an outsized effect on growing renewable energy production in Finland. The 13 Nordex turbines are specially equipped to maximize efficiency, reliability and output under the extreme wind conditions.
Here’s what Enefit Green’s management board chair, Juhan Aguraiuja, said when the news broke,
“Tolpanvaara is Enefit Green’s only wind farm in Finland. As we do not plan to expand in the Finnish market, we have decided to divest the asset.”
This announcement further illustrates the company’s efforts to narrow its scope and prioritize areas of the country it believes present a larger opportunity for growth.
Strategic Focus on Polish and Baltic Markets
Enefit Green is taking an important step in the right direction by divesting the Tolpanvaara wind farm. The move comes in effort to increase their penetration of the Polish and Baltic markets. By making this reallocation from Finland, the company will be able to refocus its resources on advancing the projects that are more in line with its long-term business interests. The order reflects a great understanding of market forces. It would show a serious intent to spend taxpayer dollars where the economic return on investment is highest.
TD Greystone Infrastructure Fund’s recent acquisition underscores the growing interest in environmental, social and governance (ESG)-friendly renewable energy projects. This trend is especially pronounced in the Nordic region. Peter Wesslau, CEO of Rabbalshede Kraft, expressed confidence in the acquisition’s alignment with their strategic interests:
“This acquisition complements our Nordic portfolio and strengthens our long-term presence in Finland.”
This acquisition is a major coup for TD Greystone’s capital markets investment portfolio. It serves as a reminder of the growing need for sustainable energy innovations.
Future Implications
Enefit Green is still moving ahead with its narrow band strategy. The divestment of the Tolpanvaara wind farm is an important step in shifting how it operates. In the meantime, the company’s divesting its one remaining Finnish asset. Its clear prioritization of Poland and the Baltic states promises plenty of room for dynamic growth and innovation in those markets.
