All posts by seppahiep

Renewable Energy Investments by Private Energy Market Fund LP (PEMF)

Renewable Energy Investments by Private Energy Market Fund LP (PEMF)

private-energy-market-fund2005 – 2013, from development to exits

  • Arkadia Wind companies (total of 40 MW greenfield wind power developed, financed and built in Greece)
  • ATBiopower Ltd (
  • Thai Biogas Energy Company Ltd (

Mr. Lehdonvirta has managed the activities of the private equity fund PEMF from its inception in 1999 until the end of investment period in 2006 and again since Nov. 2012 during the exit phase. The Fund has contributed to the development, structuring and closing of international energy investments and on hands-on management and corporate governance in Europe and Asia, often as the majority shareholder. The investments include wind, CHP, biomass, biogas and energy efficiency.

Feasibility Study of Renewable Energy Options for Rural Electrification of Cambodia

Feasibility Study of Renewable Energy Options for Rural Electrification of Cambodia



Client: The Cambodian Research Centre for Development (EC-ASEAN Energy Facility)

The objective of the project was to estimate the market potential of renewable energy in rural electricity markets, propose policy interventions and institutional framework to promote renewable energy for rural electrification and provide relevant information to private project developers. Greenfield had a role of Senior Business Advisor, bringing in the viewpoints of a private investor.

Technical and Financial Structuring of Wind Power Projects in Sub-Saharan Africa

Technical and Financial Structuring of Wind Power Projects in Sub-Saharan Africa

Wind Power in Nairobi

May 2013, Nairobi

Client: Nodalis Conceil (Africa-EU Energy Partnership)

Wind Farm Operation and Maintenance

The training session discussed the operation arrangements – both technical and organisational – required when operating a wind farm as part of the overall power system. The intermittent nature of wind energy has an effect on grid balancing and capacity dispatching. The challenges will increase progressively when the share of wind (and solar) production is growing. The session  presented practical examples on challenges faced and solutions applied in Cape Verde where the wind power penetration rate has reached 25% of annual electricity generation; sometimes over 50% on daily level.

The participants gained a better understanding on prerequisites for successful operation on various levels; starting from overall power capacity structure, covering reflections to contractual arrangements (PPA, O&M), reviewing stakeholder roles and relationships (grid operator, technical contractors) and with the main focus on wind farm technical tools and organizational aspects.

(Full presentation available on request)

Wind Power in Cape Verde

Wind Power in Cape Verde

Cabo Verde Wind PowerCabeolica
2011 – 2012

Client: Cabeólica S.A.

Cabeólica S.A. is a special purpose company established in Cape Verde in order to develop, own and operate four Wind Farms with a total capacity of 25.5 MW, in the islands of Santiago, São Vicente, Sal and Boa Vista.

The company is based on a Public-Private-Partnership between the Government of Cape Verde and international private sector investors, and with EIB and AfDB as lenders. The Company’s shareholders are Africa Finance Corporation, Finnish Fund for Industrial Cooperation Ltd, InfraCo Limited, Electra SARL and the Government of Cape Verde. The total investment of the project was at the level of €55 million.

Cabeólica S.A. signed a turnkey fixed-price Engineering, Procurement and Construction (EPC) Contract with Vestas Portugal in October 2010 for the delivery of the Wind Farms.  Vestas supplied 30 V52-850 kW wind turbines for Cabeólica; the first wind farm was commissioned in September 2011 and the fourth one in May 2012.

Greenfield Consulting contribution to the project

Greenfield’s contribution to the Project was the overall start-up management of the wind power company Cabeólica S.A. This included launching the technical, financial and administrative operation of the company within an assignment of about 2 years. During this time, Mr. Herkko Lehdonvirta acted as the resident CEO of Cabeólica SA in Praia with the duties and responsibilities to organize and supervise all the business functions of the start-up company. This included i.a. establishing the company organization and recruiting the personnel, assigning the outside services (Owner’s Engineer, Lenders’ Engineer, O&M, legal etc), supervising the construction, commissioning and O&M, capacity building and training, supervising the financial management, ensuring environmental and other permits compliance.

By the end of assignment all four wind farms were in full commercial operation, fulfilling the Government’s Renewable Energy strategy producing 25% of total electricity in Cape Verde. The company is continuing a successful business under the management of the excellent local team.

CHP DH Tariff Development

CHP DH Tariff Development

Tariff development in the LDA CHP DH schemes

Greenfield has developed a preliminary heat sales tariff for the London Thames Gateway Heat Network CPH DH scheme. The heat sales tariff has been considered from two angles; the seller’s cost background and the buyer’s alternatives (market). In addition, the analysis also included a peer comparison to some DH heat tariffs currently applied elsewhere.

Kiev CHP cost allocation and heat tariffs

The assignment for Kievenergo, Ukraine, included introducing  a new methodology  for allocating the CHP production costs for heat and power, respectively and developing of a new heat sales tariff based on the allocation. The main objectives were to prevent cross-subsidizing between heat and electricity business and to provide justified incentives for expansion of CHP DH by fair allocation of efficiency gains in co-generation.

Mr. Lehdonvirta was responsible for planning and managing the tariff development, providing the know-how on CHP cost allocation and on formulating a two-tier cost based tariff.

Financial analysis and improvement of tariff system in Jelgava (Latvia)

Work included financial analysis of the Jelgava DH utility and introduction of a cost-based two-tier tariff, based on the financial analysis.

As the DH Tariff Specialist Mr. Lehdonvirta carried out an analysis of the DH utility company’s financial situation. He also analyzed the cost background and clientele. Furthermore he estimated the future outlook for revenues, costs and investments after developing a cost based two-tier tariff system.

CHP DH Investments in the UK

CHP DH Investments in the UK

CHP district heating investments in the UKCHP DH Project Development (South East London CHP)

The development work was commissioned by SELCHP (1996) to identify heat loads, carry out the network and DH system design and to provide a feasibility assessment on commencing heat supply from the SELCHP plant. The work also included performance measurements at the plant to verify the CHP operational parameters and capacities.

CHP DH System Evaluation and Further Development (EnviroEnergy (Nottingham) Ltd)

The work included analyzing the existing system and making recommendations on system improvements. The system was based on direct connection from the waste incinerator through the London Road energy transfer station down to customers.

CHP DH Scheme Development in North London (Waltham Forest)

The work included technical design and economical analysis of several options and phases to establish a Waste-to-Energy CHP based heat distribution business. Mr. Lehdonvirta’s responsibilities were economic evaluations, technical design and project management.

Mr. Lehdonvirta carried out a feasibility study on converting the steam based heating system and installing gas fired CHP-engines to replace gas boilers for the energy needs of the hospital. The scope of work included technical design, economic evaluation and project management.

CHP DH investments in Central East Europe

CHP DH investments in Central East Europe

Klaipeda DH System Master Plan

(1996-1997, Electrowatt-Ekono Ltd)

The government of Finland financed the Klaipeda DH Master Plan to facilitate loan financing from the World Bank (WB) or the European Bank for Reconstruction and Development (EBRD), for the renovation of the municipal energy system.

Klaipedos energija AB, Klaipeda district heating company, is one of the oldest Lithuanian energy companies and the largest producer and supplier of district heat in Western Lithuania. Its history dates back to the year 1929, when on the riverside of Dane a new coal burning power plant was built. June 17, 1929 is regarded as the establishment date of the present Klaipedos energija AB.

As a Project Supervisor Mr. Lehdonvirta was responsible for the planning of the master plan work, ensuring close co-operation with the local recipient and Development Financiers involved. As a DH specialist he participated in technical design, assessed energy savings and the economic analyses for the investment plan.

Several CHP DH Rehabilitation projects in Poland  

(1990´s, Electrowatt-Ekono Ltd)

WB and ERBD have provided loans for several municipalities in Poland for infrastructure, energy efficiency and environmental rehabilitation projects. These projects included municipal CHP DH systems in the cities of Katowice, Krakow and Gdansk.

The consultant’s role in project development was typically to prepare a rehabilitation plan including technical design and a cost investment program for each of the municipal DH systems. Furthermore the work included a technical, economic and environmental analysis to assess the bankability.

As Project Manager Mr. Lehdonvirta was responsible for planning and supervision of the feasibility analysis work, ensuring close co-operation with local recipients and IFIs involved. As DH specialist Mr. Lehdonvirta participated technical design, assessed energy savings and carried out economic analysis to prepare the priority investment plan.

CHP DH Investments in China

CHP DH Investments in China

Turn-key delivery of Donshan District Heating system

(1991-1993, Ekono Energy Ltd)

The project included the design and turn-key delivery of a 20 MW District Heating system for Donshan area in Taiyuan, Shaanxhi. The client was Taiyuan District Heating Utility. Mr.  Lehdonvirta as the Project Manager during the development phase was responsible for concept development, cost estimates, contracting and co-ordination of suppliers.

The delivery comprised of steam transmission line, steam/water heatexchanger station, hot water DH network and substations. It was completed with electrification, control and automation, installation and training of staff.

Assessment of a Concessional Credit Application for a CHP DH Modernization Project in Pucheng, Shanxhi (sub-consultant to Ramboll Ltd, 2007)

The proposed project consisted of construction and installation of a heat exchanger station, pipeline network with a total length of 10.7km (double pipe) and installation of 28 consumer substations.

The assignment carried out a feasibility assessment for the Ministry for Foreign Affairs of Finland of the proposed CHP DH investment. Simultaneously it was to be assessed if the project was eligible for the use of the Premixed Concessional Credit Scheme.

The Finnish Concessional Credit Scheme for developing countries was established by the Ministry for Foreign Affairs of Finland (MFA) in 1987. The objectives of the Scheme were both development related and commercial. Competitors were increasingly using ODA funds to promote exports to developing countries and Finland wanted to match this competition. The funding agency and sole operator of the concessional credit system was Finnish Export Credit Ltd (FEC) under the Ministry of Trade and Industry. The overall objective of the projects to be supported was, according to the Act, to promote economic development in developing countries.

Greenfield’s responsibility was the technical assessment of the project set-up including heat demand, production, distribution, technical functionality and operation and maintenance.

Appraisal of CHP DH projects proposed for the World Bank financing in Shandong province

(1996, Electrowatt-Ekono Ltd)

The proposed projects were located in the cities of Yantai, Jinan and Weihai in Shandong Province. Mr. Lehdonvirta was the Project Manager and carried out technical evaluations and further developments of the project proposals, based on feasibility studies prepared by local design institutes.

Project proposals included CHP heat generation, heat transmission and distribution systems as well as district cooling.