Finnish investment and advisory company Korkia has launched a new private equity fund investing in renewable energy project development companies mainly in Europe. Korkia’s 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.
According to Korkia, 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 holding period in the project development stage is only 2 to 3 years. Korkia has a strong deal flow of more than 4 GW. In the UK over 3,5 GW deal flow for solar energy has been confirmed, of which 264 MW is on Late Stage Development and 963 MW on Active Development. In Finland it has confirmed a project deal flow of over 600 MW for wind power projects, of which 100 MW is on Late Stage Development and 435 MW on Active Development. For new markets, Korkia is currently investigating the Finnish solar market and Swedish solar and wind markets, in which project development collaboration negotiations are already ongoing.
