San Giorgio Group Case Study: Jädraås Onshore Windfarm

The Jädraås Onshore Windfarm, the largest in Scandinavian Europe at its May 2013 commissioning, was financed through a total of EUR 360 million in private investment. To overcome limited commercial bank lending capacity during the economic recession, a 'Synthetic Loan' structure was created: the Danish export credit agency (EKF) provided an AAA-rated state-backed guarantee that enabled the pension fund PensionDanmark to provide EUR 120 million in debt. The project's viability was further secured by the Swedish renewable electricity certificate scheme, providing a 15-year revenue stream. Risk was managed through hedging contracts for power and certificates and a 15-year operations and maintenance contract with turbine provider Vestas. The report argues that this model is replicable for other green infrastructure projects if simple structures and risk-coverage mechanisms are employed.

• The Jädraås Onshore Windfarm was commissioned in May 2013 as the largest onshore windfarm in Sweden and Scandinavian Europe, with a capacity of 203 MW and 66 turbines.
• Total private investment for the project was EUR 360 million, consisting of EUR 120 million in equity from Arise Windpower AB and Platina Partners LLP, and EUR 240 million in debt.
• A 'Synthetic Loan' arrangement was used to bridge the gap in commercial bank lending; the Danish export credit agency (EKF) provided a state-backed guarantee that allowed PensionDanmark to contribute EUR 120 million in debt.
• The project's financial viability relied on the Swedish renewable electricity certificate scheme, which is expected to generate between EUR 200 million and EUR 225 million in revenues over 15 years.
• To mitigate revenue volatility in the Nord Pool power market and the certificate market, developers used hedging contracts for power (5-year basis) and green certificates (3-year basis).
• Technical and performance risks were managed through a 15-year operations and maintenance (O&M) contract with the turbine provider, Vestas Wind Systems A/S.
• The project's internal rate of return (IRR) is estimated between 5.4% and 7.9% at the project level (after-tax) and between 13.7% and 17.7% for equity (after-tax).
• The use of the Danish export credit agency (EKF) was contingent on the use of Danish technology from Vestas, aligning the project with Denmark's national interest in supporting wind industry exports.
• The report identifies that the Jädraås financing structure is replicable and is already being applied or planned for other projects, including the Lingbo Onshore Windfarm in Sweden and the Northwind Offshore Windfarm in Belgium.

APA

Boyd, R., & Hervé-Mignucci, M. (2013). San Giorgio Group Case Study: Jädraås Onshore Windfarm. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Jadraas-Onshore-Windfarm-Case-Study.pdf

Chicago

Boyd, Rodney, and Morgan Hervé-Mignucci. San Giorgio Group Case Study: Jädraås Onshore Windfarm. Climate Policy Initiative, 2013. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Jadraas-Onshore-Windfarm-Case-Study.pdf.

Wikipedia

{{cite report |last1=Boyd |first1=Rodney |last2=Hervé-Mignucci |first2=Morgan |title=San Giorgio Group Case Study: Jädraås Onshore Windfarm |publisher=Climate Policy Initiative |date=September 2013 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Jadraas-Onshore-Windfarm-Case-Study.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{boyd2013san, author = {Boyd, Rodney and Hervé-Mignucci, Morgan}, title = {{San Giorgio Group Case Study: Jädraås Onshore Windfarm}}, institution = {Climate Policy Initiative}, year = {2013}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Jadraas-Onshore-Windfarm-Case-Study.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }