A new renewables fund has been established by Finland’s Taaleri Energia to build a portfolio of wind, solar, and battery assets.
According to the EU Sustainable Finance Disclosure Regulation, the Taaleri SolarWind 3 Fund will be categorized as an Article 9 “Dark Green” Fund, the highest level of sustainability.
A portfolio of utility-scale onshore wind farms, photovoltaic solar parks, and battery storage assets will be acquired, developed, contracted, built, operated, and exited across the Fund’s target markets in the Nordics & Baltics, Poland, south-east Europe, Iberia, and Texas in the US.
The fund’s 10-year goal is a 10% net internal rate of return, with the first close anticipated for early 2023.
The €44 million in development finance that Taaleri Energia obtained in 2021 will be used to acquire a portfolio of 25 to 35 development projects, which will serve as the fund’s initial investments.
To date, Taaleri Energia has purchased 17 development projects for the seed portfolio of the firm.
These projects would total 3GW of installed electricity generating capacity and cost €930m in fund and co-investor equity to build if they all reached ready-to-build status during the investment period of the fund.
Taaleri Energia has obtained exclusivity on 15 additional development projects in its target markets and will keep acquiring projects right up until the fund’s initial closing.
The sixth renewable energy fund from Taaleri Energia builds on the team’s expertise and track record accumulated over the last 12 years with the Taaleri SolarWind 3 Fund.
Over 90% of the current SolarWind 2 Fund (2019) has been committed, and 11 investments in Croatia, Finland, Lithuania, Norway, Poland, Spain, and Texas have already been completed.
Kai Rintala, Managing Director, Taaleri Energia said “The SolarWind III Fund strategy follows on from the success of the SolarWind II Fund. We are operating in the same target markets, working together with the same strategic partners, but starting with a large seed portfolio of development projects.”
“The demand for renewable energy projects across our target markets has increased significantly over recent years, with a marked additional increase in demand over the past 12 months.”
“By securing development projects early we have been able to lock in considerable potential future value for the SolarWind III Fund.”