Scandinavia to get green-power boost as EU throws its weight behind Prime Capital energy fund

EIF invests €100 million in green-energy fund focused on expanding clean power.
EIF pledge is to fund run by Germany-based Prime Capital, bringing total fund size to €313 million for projects in countries such as Sweden, Finland and Norway.
Initiative, backed by InvestEU programme, to promote renewable energy including onshore wind power and green hydrogen.

The European Investment Fund (EIF) is committing €100 million to accelerate the development of renewable energy in the Nordic countries, including onshore wind power and green hydrogen. The EIF pledge is to a green-energy infrastructure fund run by Germany-based Prime Capital AG and increases to €313 million the total commitments to the fund, which targets projects in countries such as Sweden, Finland and Norway.

The EIF backing is part of Prime Capital’s successful third closing of the fund, which is called the Prime Green Energy Infrastructure Fund II (PGEIF II). It continues the strategy of a predecessor with the same name. Prime Capital’s first energy fund deployed its capital in just over two years, delivering returns significantly above target. PGEIF II’s target size exceeds €650 million.

PGEIF II focuses on European renewable-energy projects particularly in Scandinavia, where Prime Capital has built a strong portfolio in the onshore wind market. The fund’s raised capital will be invested primarily in clean-energy infrastructure, including onshore wind farms and sites that combine energy generation, transition and battery storage. In addition, the fund will also invest in green fuel production as part of its diversification strategy. These projects will strengthen Europe’s energy independence, advancing the REPowerEU initiative.

Dr Mathias Bimberg, head of infrastructure at Prime Capital, said its expertise in the region and knowledge of the local wind-power market were instrumental in attracting investor interest, including the EIF.

“Our strategy was built on the excellent wind resources in Scandinavia and our greenfield build-to-core approach, which has consistently delivered above-market returns,” he said. “We are excited to continue this work with PGEIF II while expanding into other high-potential renewable energy markets across Europe.”

PGEIF II is categorised as an Article 9 (“dark green”) fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), meaning it is exclusively focused on sustainable investments that contribute to the EU’s climate and energy goals. It also supports energy-transition technologies including energy storage and the production of green fuels.

"Prime Capital's second green energy infrastructure fund is perfectly aligned with our goals to promote strategic and sustainable investments," said EIF Chief Executive Marjut Falkstedt. "This investment will accelerate the shift to renewable energy in Europe, contributing to its energy autonomy as well as to the fight against climate change."

Prime Capital initiated its energy-infrastructure strategy more than a decade ago, is one of the largest investors in the Scandinavian onshore-wind sector and is set to expand its position through PGEIF II. The company has successfully completed 45 equity transactions to date. Through its first fund the company manages renewable-energy projects with a capacity of 1.3 gigawatts under construction or in operation, generating approximately 4 terawatt hours of green electricity annually.

“Our energy-infrastructure strategy remains a central pillar of our investment activities,” said Prime Capital Chief Executive Officer Andreas Kalusche. “We are particularly pleased to have achieved three successful closings, despite the challenging market environment, and we are delighted to welcome the EIF as a major investor alongside several new national and international investors.”

Approximately 45% of the commitments to PGEIF II come from existing investors, with 55% from new investors, including EIF.