The Renewables Infrastructure Group Ltd., a clean-energy fund based in London, bought six onshore wind farms in Scotland for 246 million pounds ($388 million).
The operating sites with gross capacity of 433 megawatts raise the fund’s net clean-energy generating capacity 48 percent to about 658 megawatts, it said in a statement Wednesday. Fred Olsen Renewables Ltd. will operate and maintain the facilities.
“This is a major expansion in the size of TRIG’s business, increasing the portfolio by approximately half and bringing further advantages of scale and project diversification to TRIG’s investors,” Richard Crawford, director of infrastructure at the fund’s investment manager InfraRed Capital Partners Ltd., said in the statement.
TRIG funded the deal partly with its own cash and also an acquisition facility with Royal Bank of Scotland Plc and National Australia Bank Ltd., it said in the statement. The fund plans to raise money to repay part of the acquisition facility through an institutional share offer next month, it said.
All of the projects receive premium payments for power they produce through the U.K.’s Renewable Obligation program.
The U.K. last week said it would scrap subsidies for new onshore wind under the program a year early. That angered the clean-energy industry as it halts assistance to the cheapest large-scale renewable power. The government says the action is necessary to spur support for less-mature technologies.
Land-based wind costs about $85 a megawatt-hour, compared with about $90.70 for coal, according to Bloomberg estimates.