Arise Windpower AB, a Swedish wind developer, will invest 1.3 billion kronor ($196 million) in a Swedish project it agreed to buy from Ownpower Projects AB, provided electricity and certificate prices recover.
Arise plans to build 28 of the 40 turbines on the 84-megawatt project “once electricity and certificate prices have recovered somewhat from today’s levels,” according to a statement from the Halmstad-based company today.
Sweden operates a green certificate market to provide incentives for renewable energy. It obliges electricity suppliers to buy certificates corresponding to a proportion of their power distribution. Each certificate typically represents 1 megawatt-hour of power sourced from renewables.
The average daily price for certificates in Sweden was 172.83 kronor ($26), as of Aug. 30, according to data compiled by Bloomberg. In the U.K., the average daily price is 40.17 pounds ($63.7), and in Poland its 236.63 zloty ($71.3).
Arise signed a conditional agreement with Visby-based Ownpower earlier this month to buy the project that has all approvals in place in Solberg for as much as 120 megawatts.
Those conditions, including landowner issues that have now been met, allowing the purchase to be completed, according to today’s statement. The project will take about 14 months to build, with operation expected in 2014, according to Arise.