Korkia, a Finnish investment business, has established a private equity fund to invest in renewable energy projects predominantly in Europe, with a transaction volume of more than 4GW.
Focusing on project development, according to Korkia, would offer the fund a potential yearly revenue of more than 10%.
Korkia’s investment strategy focuses on supporting renewable energy during the project development stage, as opposed to the more traditional model, which concentrates on building and selling energy facilities and collecting revenue from power sales, it is said on the corporate website.
In the United Kingdom, over 3.5GW of solar energy deal flow has been confirmed, including 264MW in the latter-stage development phase and 963MW in the continuing development phase.
Korkia has more than 600MW of verifiable project deal flow for wind power projects in Finland, including 100MW in late-stage development and 435MW in active development.
Korkia is looking at new markets such as the Finnish solar market and the Swedish solar and wind sectors, where project development partnership negotiations are already ongoing.
“According to our experience, investing in project development with a diverse project portfolio may provide over 10% p.a. expected returns, compared to 5-8% in the building and operation stages,” Jussi Lilja, Korkia senior vice president for asset management, stated.
“The project development stage is only held for 2 to 3 years.”
“This enables the fund to turn over money faster than during the development and operational stages, allowing our customers to earn larger returns.”
Korkia is a renewable energy expert with “years of successful energy investment expertise” and its own energy team of more than 20 people.
The firm mostly invests in Nordic countries and Europe, but it also invests in other regions like as Latin America.
Korkia’s investment criteria include a well-established market with strong governmental support for renewable energy, attractive returns, favorable financial markets, experience in the local EPC market, and exclusive access to the project development company’s transaction flow.