Our group has always been interested in using the wind potential. Over the previous periods we have explored several locations throughout Europe. We look for appropriate locations with good conditions. Currently in wind sector, we develop investment portfolio of 48 MW.
For a certain period of time, our company had been looking for an appropriate local partner to cover project permits highly dependent on local aspects. After several interviews and due-diligence of various developer groups and projects, we have found the right partner.
The local partner has several strengths such as experience from wind power engineering from other Nordic countries, a significantly big local team, and a relatively wide portfolio of projects from which janom, after its due diligence, could opt for projects to meet its requirements.
- Project Tyrinselkä
- The capital gain already in the heart of the initial phase of the project
- The schemes of project financing
- janom Ltd. enters the Finnish wind power market
janom is an investor of Tyrinselkä 12MW wind power plant located in the south-west Finland. The power plant contains of 4 x Nordex N131 3MW turbines with a 144-meter hub height, at the time of that construction it was the highest on-shore turbine in the world. Tyrinselkä produces electricity in full operation from September 2016.View on Google Maps
Given the fact that the company has accumulated many years of experience in the development and innovation of sustainable energy projects, it has decided to join certain projects already in their initial stage. On one hand, the initial phase of each project - The process of submitting a request for the building permits - represents admittedly the highest risk for the investors. On the other hand, it remains the most crucial phase when it comes to the correct setup of the investment. Within the life cycle of a power plant - its development, construction and maintenance - it is undoubtedly in this stage where the capital gain is hidden. Since the obtention of the building permits for the construction of a power plant highly depends on local aspects, the company has started a collaboration with an experienced local partner. Its expertise acquired when working on other Nordic projects in the domain of wind energy and a large enough local team has brought to the group the valuable assets it was seeking for. Within this project, the local partner is responsible for obtaining the building permits and janom Ltd. for financial and managerial support of the project. When janom Ltd. has joined the projects, only long-term land leases related to the construction of the power plants and the necessary infrastructure were settled upon. The company, together with local partners, has then lead the process of securing the building permits complemented by the environmental study, the optimal layout of turbines, the connection of the power plant to the grid and the strategic decision-making within the initial phase of the project. Measuring and evaluating of wind capacity in the assessed area was also part of the development process.
The company has been currently preparing the non-resource financing scheme for its pilot project which will be secured by a bank without any guarantees for the sponsors of the project. The effectiveness of this scheme is determined by a secure setup of the negotiated contracts signed between the investor and the bank as well as the contracts which are to assure the supply of the turbines, the building permission for the foundations of the plant, the connection of the power plant to the grid, the supervision of the investor’s and bank’s duties during the construction process, the supplementary insurance related to the construction and maintenance of the plant, the sale of electricity and the maintenance and operation of the power plant. The key factor in this kind of project financing is to bring together the opposing business interests of all the participants.
As early as in 2012, the company janom Ltd. decided to diversify its portfolio of renewable resources in wind power engineering. Following a thorough analysis of its business opportunities within the EU, it was decided to invest in Finland. Several reasons led the company to take this challenge. Firstly, Finland began investing into the development of wind power plants later than the rest of Europe. Consequently, the business opportunities in the domain of renewable energy and power plant construction in this country is very advantageous. Secondly, Finland is the major importer of electricity in Scandinavia, importing about 20% of its annual consumption. This is, undeniably, another convincing fact for longer-term business projects supporting the development of renewable energy in Finland. Finally, the expected support throughout the construction process of these plants and the good weather conditions coupled up with a highly appreciated business environment created a positive investment potential for our company.