Energy|Ox2 decided in Finland to date the largest wind power investment. Projects of EUR 700 million will increase Finnish electricity production by about 2 %. The municipalities in the area will have large tax revenue.
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Renewable electricity producer OX2 will start the construction of Finland’s largest wind power investment with EUR 700 million.
Two wind farms in Southern and Central Ostrobothnia produce two percent of Finland’s electricity production when completed.
Veli-Pekka Alkula, Country Manager at OX2, says that the decline in interest rates and power plants has made it possible to invest in a profitable investment.
Renewable OX2, which builds electricity production, launches Finland’s largest wind power investment so far, worth EUR 700 million.
Construction starts immediately. The investment consists of two wind farms rising to southern and Central Ostrobothnia, which has a nominal power of 472 megawatts.
After graduating, they produce a total of 1.6 terawatt hours per year, or about two percent of Finland’s current overall production. The parks will be completed during 2027 and 2028.
New wind power investments have been almost completely frozen for about a year and a half. Ox2 made the previous investment decision at the end of 2023.
Yet Last year, there were plenty of wind turbines. Wind power production capacity increased during the year by as much as 1,500 megawat, or 22 %. It corresponds to the nominal power of almost the third reactor of the Olkiluoto nuclear power plant.
The wind farm produces about 30-40 % of electricity in relation to the same efficiency nuclear power plant.
Some big projects will be completed this year. For example, the Lestijärvi and Niinimäki parks built by OX2 will increase wind power capacity this year by 600 megawat and the annual electricity generation of 1.7 terawatt hours.
Wind turbine The construction stopped first and foremost due to the rise in interest rates and the rise in power plants. The sharp rise in steel increased the price of wind turbines by up to ten percent.
New projects have been promoted, but no investment decisions have been made.
What has changed now?
“Above all, the interest rates have fallen and the prices of the power plants have come a little down. Our decision is an indication that even in this investment environment, projects can be done profitable,” says OX2 Country Manager Veli-Pekka Alkula.
Whether OX2’s decision signal that a bottle of ketchup in renewable electricity was opened?
“At least for our own behalf, we already have the following investment decisions in the preparation that we will start,” Alkula says.
OX2 also invests in sun power and energy stores, or acoustic.
One factor in the stopping of investments has been uncertainty about the increase in electricity consumption. It is not advisable to build electricity production if there are no users for electricity.
The launch of wind power construction suggests that the industrial investments that may also be highly used for electricity could start.
Veli-Pekka Alkula.
Alkula You refuse to tell about the electricity buyer of the parks to be built now than that it is an internationally operating company.
However, he believes that additional wind power construction can bring a positive stir to industrial investments. OX2 has discussions with many actors.
“Finland has great prerequisites for strong increase in the production of renewable energy.
Wind Critical speeches have been used on how much power plants eventually benefit the Finnish economy. OX2 is also owned by the Swedish venture capitalist EQT.
Alkula is not able to assess the employment impact of the projects exactly.
“Locally, especially during the construction phase, it is significant.”
OX2 itself has a hundred employees in Finland. Multiple contractors are responsible for the construction of parks. Destia is responsible for the power station contracts of the parks. Even the parks need regular maintenance and maintenance.
The municipalities in the area receive a total of approximately EUR 2.5 million per year, of which two million to the River Kari and Isojoki.
The total tax revenue for these two municipalities last year was approximately EUR 7.6 million, so the additional income of two million is really significant for them.
In addition, landowners in the area receive rental income.
On the other hand, the EQT Infra VI Fund, which owns OX2, has, for example, the Finnish pension funds, for example, Varma and Ilmarinen’s Finnish pension funds, that is, through that, the yields of wind turbines will benefit from the Finns.
Above all, the construction of cheap electricity production is thought to benefit the Finnish economy so that it attracts industrial investments here.
Large The wind power investment shows that the construction of renewable electricity production is so cheap that it is worthwhile even though the price of electricity has fallen very advantageous after the crisis years.
For example, Fortumín’s message has been that no production is now profitable. The company has lobied support for the construction of a new nuclear power plant.
OX2 has previously sold the projects, for example, to private equity funds, which have invested equity for the projects. However, future parks keep it in its own balance sheet.
According to Alkula, the construction of ground winds is simply so cheap that it attracts investments.
The equation is also influenced by the fact that the amount of flexible electricity consumption is now growing rapidly in Finland.
“How quickly the traditional energy companies have invested [kaukolämmön] Everything has been surprised by the power boilers, ”Alkula says.
Power boilers are heated when electricity is very cheap and are already smoothing out electricity price fluctuations.
Adjustment 1.4. 9.55am: The title of the news was given that there would be one park instead of two. In addition, the news wrote that Destia is building parks. In reality, it is responsible for the transmission line contracts. Adjustment 1.4. 10.38am: Destia is only responsible for the transmission line of the other park.