San Giorgio Group Case Study: Jädraås Onshore Windfarm
Published: September, 2013
In the Jädraås Onshore Windfarm case study, CPI describes how a combination of public policies and financial instruments, and robust private risk management measures mobilized EUR 360 million of private investment in Scandinavia’s largest windfarm, delivering power to 100,000 homes.
Given the potential scale of institutional investment and that they are not traditional investors in renewable energy projects, when they do engage, it is important to draw out lessons to understand what worked, what was needed to encourage their participation, and what potential exists to replicate and scale similar approaches. The Jädraås project and its financing structure offers this insight and shows that public support can encourage institutional investment in green technologies, provided the public sector offers risk coverage. For the Jädraås Onshore Windfarm, a Danish state-backed guarantee of export financing facilitated alternate lending from a pension fund, and the Swedish renewable policy incentive provided a long-term revenue stream which assured commercial viability.
- energy finance
- institutional investors
- public climate finance
- risk mitigation