SUSI Partners, through its SUSI Renewable Energy Fund II, has sold Norway’s fourth-largest wind farm Tonstad Vindpark (“Tonstad”) to local utility Hafslund. The history of the asset and SUSI’s value-adding contributions from acquisition to exit have been recorded in a short case study report.

Located in the South of Norway, Tonstad comprises 51 turbines for a total of 208 MW power generation capacity. Since entering commercial operations in August 2020, the asset has established a robust production track record with approximately 650 GWh annual production, which is enough to cover the electricity consumption of 100,000 Norwegian households.

SUSI Partners acquired 80% of Tonstad at the start of the construction phase in 2018. The SUSI team subsequently took the lead in negotiating the long-term offtake agreement which secured stable cash flows also in times of low power prices while allowing for appropriate flexibility and inflation protection in high-price environments. SUSI furthermore arranged the debt financing based on a well-established relationship with a German bank.

During the construction and operational phase, SUSI leveraged its in-house technical, commercial, and ESG expertise to protect and enhance asset value. The SUSI team managed construction through a global pandemic, detected deficiencies and optimisation potential on important equipment early on, maintained good relationships with the neighbouring communities, and undertook several value-adding initiatives that will allow the new owners to extend the asset lifetime and expand the site with further turbines.

In 2022, the SUSI team took the opportunity to acquire the remaining 20% stake from minority shareholder ENGIE in a value-accretive deal that laid the groundwork for a successful asset sale. It also actively engaged with Norwegian authorities to mitigate the adverse impacts of a proposal for a new resource rent tax. Finally, in early 2024, SUSI initiated a process to sell Tonstad in a beneficial market environment and has now secured a selling price that reflects the value added by SUSI and secures a very attractive risk-adjusted return to the firm’s clients.

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Realising Added Value: Insights into the Sale of Norway's 4th-largest Wind Farm