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llianz Capital Partners (ACP) has acquired its first wind generating capacity in Finland.
The private equity arm of insurer Allianz bought six turbines from wind power company OX2, expanding its €2.5bn ($2.7bn) portfolio of 55 renewable energy projects in Europe.
The site at Jouttikallio, around 80 km from Vaasa, has a capacity of 21 megawatts and will satisfy the electricity demands of around 12,600 households, according to ACP. The project is due to be commissioned and delivered to Allianz at the end of 2016. OX2 will be responsible for the commercial and technical management of the wind farm.
The purchase price was not disclosed.
David Jones, ACP's head of renewables, said Finland is a promising European wind market.
Jones explained last summer that investing in wind and solar farms is particularly attractive for insurers because they provide stable investments and long-term yields.
"We are looking at an investment horizon of at least 25 years," he said. "What's more, yields from investments in wind and solar energy are higher than those of many other investment classes, such as government bonds - at the moment the market yields for renewable energy are at round about 5-6% and these yields are also totally uncorrelated with the ups and downs of the financial markets. They positively contribute to diversification."
Other insurance asset management arms committed to renewable energy include M&G Investments, Legal & General in the UK, and Gothaer Versicherungen in Germany, as reported by IAR in 2015.