Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) has committed 100 million to the Prime Green Energy Infrastructure Fund II (PGEIF II), managed by Germany-based Prime Capital AG, to enhance the development of renewable energy in the Nordic countries, specifically targeting projects in Sweden, Finland, and Norway. This investment is part of a broader initiative backed by the InvestEU programme, aimed at promoting renewable energy sources such as onshore wind power and green hydrogen.
PGEIF II, which has a target size exceeding 650 million, builds on the success of its predecessor fund, which achieved returns significantly above target within just over two years. The new fund will primarily focus on clean-energy infrastructure, including onshore wind farms and energy storage solutions, while also diversifying into green fuel production. This strategic approach is designed to bolster Europes energy independence and support the REPowerEU initiative, which aims to reduce reliance on fossil fuels.
Dr. Mathias Bimberg, head of infrastructure at Prime Capital, emphasized that the firms expertise in the Scandinavian wind market was crucial in attracting investment, including from the EIF. The fund's strategy leverages the region's excellent wind resources and a build-to-core investment approach, which has consistently yielded above-market returns. As of now, Prime Capital has successfully completed 45 equity transactions and manages renewable-energy projects with a capacity of 1.3 gigawatts, generating approximately 4 terawatt hours of green electricity annually.
This investment not only aligns with the EIF's goals to promote sustainable investments but also significantly contributes to the European Union's climate and energy objectives, enhancing the transition to renewable energy sources across the continent.