Augusta Investment Management (“AIM”), backed by Ampega Asset Management, has closed a 15-year, 5.3TWh power purchase agreement with Uniper subsidiary Sydkraft Hydropower for a portfolio of 15 hydropower assets in Swedish price areas SE2 and SE4.
This PPA increases AIM’s Nordic reservoir hydropower portfolio to more than 2TWh of annual generation across more than 20 individual assets. This also means that AIM, which has now deployed €800m into this strategy in the Nordics, has proven that the institutionally-backed PPA can be attractive for both generators and investors even after the upheaval in power prices caused by the recent Ukraine war induced European gas crisis.
This transaction is Ampega Asset Management’s first venture in Nordic hydropower, adding to their substantial portfolio of renewable energy interests. For Uniper and Sydkraft this transaction marks the first PPA of this type closed with a financial counterparty and highlights the importance of their renewable energy business.
Mortimer Menzel, who leads AIM said: “We were particularly impressed with the constructive and commercial approach of both our investors Ampega and the counterparty Uniper and their respective advisers in this complex and lengthy transaction. This is the fourth transaction of this type which we have closed. We developed the strategy for institutional investors to have access to scarce long-term green electricity with storage such as reservoir hydro at competitive returns. We look forward to the follow-on transactions”.
Augusta Investment Management was advised by Roschier (legal) in Stockholm.
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