Feb. 1 (Bloomberg) -- Blue Energy Co., a closely held renewable-power developer, bought RidgeWind Ltd. and its portfolio of U.K. wind farms for 250 million pounds ($395 million) from HgCapital LLP.
RidgeWind has 45 megawatts of projects in late-stage construction, 132 megawatts with planning permission and a “significant” development pipeline, private-equity firm HgCapital said today in an e-mailed statement. The purchase price includes the cost of developing the projects.
The U.K. has promoted wind farms as it pursues a target to get 30 percent of its electricity from renewables by 2020, up from almost 12 percent now. Draft legislation detailed in an energy bill last November would provide new financial mechanisms and incentives for low-carbon power as the country seeks investment to replace aging generators and upgrade grids.
“Blue Energy has ambitious growth plans and we aim to progress further transactions of a similar nature in the U.K. wind sector this year,” Chris Dean, chief executive officer of the Alderley Edge, England-based company, said in the statement.
The company is looking for similar deals in Britain and is already in talks with “counter-parties,” Doug Coleman, special projects director at Blue Energy, said by e-mail. It’s also assessing deals in other European countries.
Onshore wind has been the subject of debate after about 100 Conservative Party lawmakers wrote to Prime Minister David Cameron last year calling for subsidy cuts for land-based turbines, saying they’re an intermittent power source that blight the landscape.
Blue Energy, which financed the RidgeWind acquisition with funds from shareholders and Banco Santander SA, has 9.7 megawatts of U.K. wind farms under development, according to the statement. It also plans to build a 155-megawatt solar photovoltaic plant in Ghana.
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