🇫🇮 Ilmatar uses an innovative TCI-contracting model to construct one of Finland’s biggest wind farms

Press release from Ilmatar

December 19, 2023

Ilmatar, a Nordic energy company and Independent Power Producer (IPP), has made a final investment decision to build a 30-turbine wind farm in Pahkakoski, in municipality of Ii, approximately 60 kilometers North-East from Oulu, Finland. 

The wind farm will be one of the biggest in Finland. Construction of the 186-megawatt onshore wind farm starts immediately, and turbines are expected to reach the site already in late summer 2024. The planned commercial operation date is in summer 2025.

– This is a big investment decision that we are very proud of. We know that more renewable energy is needed and despite the changing economic circumstances the green transition needs to continue. Pahkakoski wind farm is a proof that Ilmatar continues to be courageous in its investment decisions and uses the most effective techniques to build renewable energy in the Nordics, comments Juha-Pekka Weckström, CEO, Ilmatar Energy.

Once completed, Pahkakoski wind farm will have a production capacity of approximately 600 gigawatt-hours annually which equals to an electricity consumption of approximately 240.000 apartments or 30.000 electrically heated detached houses. Pahkakoski will be a significant addition to Finland’s wind power capacity. Ilmatar has signed a Turbine Supply Agreement with a Danish wind turbine manufacturer Vestas which includes a 30-year Service and Availability Agreement for the operative term.

– The Pahkakoski project is another great example for our collaboration with Ilmatar and underlines the strong relationship we have. Together, we have secured a total of more than 150 wind turbines in ten years which proves our common vision of fostering a sustainable future for Finland. We are delighted to be the chosen supplier for this project and looking forward to our future cooperation with Ilmatar, says Nils de Baar, President of Vestas Northern & Central Europe.

New and innovative TCI contracting model to be used in wind farm construction 

Ilmatar is optimizing the project by using a TCI-contracting model (Transport, Crane and Installation), commonly used particularly in the U.S., where the traditional full scope OEM (Original Equipment Manufacturer) delivery and installation is split between the wind turbine manufacturer and TCI-contractor.

Pahkakoski will be one of the first large scale sites in Europe to be built with TCI-operating model. Ilmatar selected Silvasti, a special transport company with a proven track record from big scale wind power projects in the Nordics, to deliver the TCI-scope. Silvasti will take over the wind turbine components at the port in Finland and once fully installed, hands them back to Vestas for commissioning and servicing for the next 30 years.

– The detailed execution planning is progressing well, and we are very excited to see the results of the TCI-contracting model. Silvasti is very committed to the delivery of the project and has shown true professionalism throughout the whole process. In addition, use of the TCI-operating model increases the domesticity rate of the project providing more work for local contractors in Finland, says Antti Lehtinen, Director, Procurement, Ilmatar.

Ilmatar committed to continue investing in renewable energy production 

Ilmatar is dedicated to foster future investments in the Nordics by continually expanding its renewable production capacity. The aim is to create an environment that is as attractive as possible for energy-intensive investments. The key factors influencing these investment decisions include the availability of reasonably priced renewable energy from reliable suppliers like Ilmatar.

– We are delighted that, following our acquisition of Pahkakoski project rights, we successfully expedited its permitting and other investment preparations. We recognize the project’s substantial importance, contributing not only to the local municipality of Ii but also on a national scale, enhancing the fossil-free electricity production in Finland. This improvement is valued by our clients now and will continue to be a positive factor for them as they plan their future investments. Our pioneering spirit extends to the European level as we proudly lead the way in implementing the TCI concept, states Erkka Saario, Vice President, Projects, Ilmatar.

Ilmatar has quickly grown to a leading Nordic IPP. During 2023, it is commissioning six onshore wind farms and one solar farm in Finland. It has approximately 1GW portfolio of renewable energy in operation, under construction or in ready-to-build phases. According to company’s strategy, the assets it builds remain in Ilmatar’s ownership throughout their lifecycle. In November 2023, Ilmatar announced that it has started to construct 38.4MW Korpilevonmäki wind farm in Säkylä, South-West Finland.

For more Ilmatar pictures: https://ilmatar.fi/uutiset/mediapankki/

Originally published on 15 December by Ilmatar.

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