The jointly owned investment company of the first, third and fourth Swedish AP funds, Polhem Infra, in partnership with funds managed by Prime Capital AG, has committed approximately €420m to construct a 265 MW Lynx wind farm portfolio in Lycksele, Sweden.

The partnership will construct three wind farms, Fjällberg, Vinliden, and Hornmyran, estimated to start production in 2027 with planning currently underway.

The investment aims to add approximately 1 TWh of renewable energy annually to Sweden, enough to power around 100,000 households. The renewable energy produced will support the industrial energy transition in northern Sweden.

In addition to this, the portfolio will include a regulated grid company responsible for connecting the wind farms to the regional electricity network via a new substation and a 70 km, 170 kV transmission line.

Polhem Infra has acquired a 49 per cent stake in the portfolio and will co-invest alongside funds managed by Prime Capital AG.

The wind farms will feature “state of the art” turbines designed for the northern region of Sweden and the local environment, estimated to achieve a capacity factor exceeding 40 per cent.

The project will build on the early development by Prime Capital AG and RES and seek to reduce energy costs through efficient constriction and operations while outlining routes for revenue management and financing.

The investment suggested that Swedish wind power has a “significant role to play” in the future Nordic energy market and as a “key enabler” for the energy transition towards a net zero greenhouse gas issue.

Commenting on this, Polhem Infra CEO, Anna Elmfeldt, said Polhem Infra was “thrilled” to partner with Prime Capital on this portfolio to enable a “much needed large-scale renewable energy production for the Swedish energy transition and electricity demand increase over the coming decades”.

She said this investment demonstrated there were “very good” renewable energy projects in Sweden that could provide long-term returns, emphasising that this portfolio provided a welcome addition to cost-efficient renewable energy production.

Elmfeldt also called it “another step in fulfilling Polhem Infra's dual mission of investing in long-term assets that generate both strong risk-adjusted return as well as providing societal critical infrastructure”.

Adding to this, Prime Capital AG head of infrastructure, Mathias Bimberg, said: "We have been one of the largest and most active investors in renewable energy and the energy transition in the Nordics during the past years with an investor base coming primarily from outside the Nordics.

“This marks the last construction project for our Prime Green Energy Infrastructure Fund I. We will continue our activities through our second fund with an increased focus on eFuels supporting Nordic economies turning into hydrogen economies.

“I am proud and very excited about the new partnership with the Polhem Infra's team for Lynx and for the continued joint development of this high-quality portfolio.”

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