REIF – the fund which focuses on profitable investments in wind and solar energy
In December 2014, OX2 delivered eight wind turbines to the Renewable Energy Infrastructure Fund (REIF). “Investments in wind power give long-term and predictable cash flows, which is precisely what institutional investors are looking for”, says Ralph Seraphim, Managing Partner at Goodyields Capital, the fund’s managing director.
REIF is a German-based fund which offers institutional investors opportunity to invest in a diversified portfolio of renewable electricity generating sources. The reason why renewable energy are of interest to institutional investors is that investments in wind and solar plants provide long-term and, in general, highly predictable cash flows, which have low correlation with the capital markets, but with a return which is in line with or exceeds institutional investors’ requirements.
“The global energy sector is currently undergoing a massive and exciting transformation. The technical progress made within renewable energy in the past decade has led to dramatically reduced production costs. There is a global political will to reduce emissions and dependence on expensive and limited fossil fuels, which also frequently originate in politically unstable countries”, says Ralph Seraphim.
REIF was launched in 2013, and, so far, has invested in two solar power plants in Italy, and one onshore wind farm in France and a wind farm in Sweden. This latter consists of eight wind turbines (16 MW) located at Mässingberget in Dalarna. The eleven turbines at Mässingberget were erected by OX2 in 2014.
“Sweden and the Nordic region are attractive markets for investors in wind power thanks to the excellent wind conditions and low political risk. We will continue to focus on the Nordic countries for future investments, and would be delighted to do business with OX2 again. They have been extremely reliable and fast. The partnership has worked extremely well and is particularly noteworthy for its mutual confidence”, says Mr Seraphim.
Facts about Mässingberget wind farm
- The wind farm is situated at Mässingberget, around 17 km north of Orsa in the County of Dalarna.
- The wind farm consists of 11 Vestas V100 2.0 MW turbines.
- The owners are: REIF (8 turbines), Polarbröd (1 turbine), E-Kraft (1 turbine) and Älvsborgsvind (1 turbine).
- The whole farm is expected to produce 76 GWh/year, which is equivalent to the annual electrical consumption of around 16,800 households. REIF’s output is estimated at 55 GWh/year, equivalent to the annual electrical consumption of just over 12,000 households.
- OX2 commissioned and delivered the wind farm to the investors in December 2014.
- OX2 continues to be responsible for managing the operations of the wind farm, both technically and commercially.