February 21, 2024

Lenders Trust Ilmatar – Innovative Approach at Pahkakoski Wind Farm Redefines Renewable Energy Construction in Europe

Ilmatar’s investment decision, reported in December 2023, regarding the significant-scale Pahkakoski wind farm shows the trust placed in Ilmatar by lenders and company’s ability to secure financing for its renewable energy projects.

Pahkakoski wind farm will have 30 turbines and is expected to generate renewable wind energy at a nominal capacity of approximately 200 megawatts (MW) once completed. The wind farm is scheduled to be operational by no later than 2026. Four lenders are involved in Pahkakoski’s long-term project financing.

– Part of the project is financed through debt from KFW IPEX-Bank, Nordic Investment Bank, BNP Paribas, and Siemens Financial Services through Siemens Bank. The remaining capital comes from Ilmatar. Interest rate risk is mitigated through a long-term SWAP agreement, according to Jani Nurmi, Head of Commercial at Ilmatar.

Ilmatar employs the TCI (Transport, Crane, and Installation) contracting model to optimize project progress. This model, commonly used in the United States, divides the traditional full-scope OEM (Original Equipment Manufacturer) delivery and installation between the wind turbine manufacturer and the TCI contractor. Pahkakoski wind farm will be one of the first large-scale projects in Europe built using the TCI contracting model.

– Pahkakoski demonstrates our ability to secure competitive project financing even for ventures that introduce new, innovative solutions, such as the TCI concept, as noted by Nurmi.

Once completed, Pahkakoski wind farm will produce approximately 600 gigawatt-hours (GWh) of clean and emissions-free electricity annually, equivalent to the electricity consumption of around 240,000 apartment buildings or 30,000 electrically heated detached houses.