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Vestas partners with Vattenfall on large wind energy project in Sweden

Joe Raedle | Getty Images

Wind turbine specialist Vestas has entered into a partnership with Swedish utility Vattenfall and Danish pension fund PKA to build a new 353 megawatt (MW) wind energy project in Sweden.

Vestas will provide the development with 84 of its V136-4.2 MW turbines, the business said in an announcement Wednesday. It will also become a shareholder via a share purchase agreement for 40 percent of the project.

In turn, PKA and Vattenfall will each own 30 percent. Total construction funding for the project is around 350 million euros ($412.34 million).

"The cost of renewable energy is going down, which is making the market more competitive and creating new opportunities," Anders Runevad, Vestas' president and CEO, said in a statement. "In this dynamic market, we continue to leverage our deep expertise across the entire value chain to develop solutions with our customers that produce the lowest cost of energy."

The project, which has been developed by Vattenfall, will see the turbines installed at the Blakliden and Fabodberget wind parks in central Sweden. The Blakliden wind park will have 50 turbines, while the Fabodberget site will have 34.

Sweden installed 197 MW of new wind energy capacity in 2017, according to figures from trade body WindEurope.

Magnus Hall, Vattenfall's president and CEO, said that the Blakliden and Fabodberget development represented "an important step in our strategy to become fossil free within one generation." Hall added that it was important for the business to demonstrate that it was making a "major investment" in Swedish renewables.

Vestas added that turbine delivery was due to begin in the first half of 2021, with full commissioning slated for the fourth quarter of that year.