Finnish investment company Korkia has launched a private equity fund to invest in renewable energy projects. The firm targets a deal flow in excess of 4GW, mostly across Europe.
According to the company, "focusing on project development will offer over 10% annual yield potential for the fund."
The company stated that its investment strategy focuses on "financing renewable energy in the project development stage, which differs from a more common model where the focus is on building and selling energy plants and in the pursuit of electricity sales revenue."
Korkia executive vice president for asset management Jussi Lilja was quoted in a report, “In our experience, investments in project development with a distributed project portfolio can generate over 10% p.a. expected yields, compared to 5-8 % in the construction and operation phases."
The company has been investing mostly in the Nordic countries and Europe, along with targeting other markets like Latin America.
For instance, over 3.5GW deal flow for solar energy has been confirmed in the UK, out of which 264MW is in the late stage development phase. The company has a confirmed project deal flow of over 600MW for wind power projects in Finland.
Besides, Korkia is also investigating the Finnish solar market and Swedish solar and wind