Greencoat, Pension Funds Invest $510 Million in U.K. Wind

Greencoat U.K. Wind Plc and infrastructure investor GMPF & LPFA Infrastructure LLP bought almost half of the U.K.’s biggest onshore wind farm from SSE Plc for 355 million pounds ($510 million).

Greencoat will hold a 28.2 percent stake in The Clyde wind farm in South Lanarkshire, southeast of Glasgow. GMPF & LPFA, a joint venture formed by pension funds in London and Manchester, will own a 21.7 percent stake with SSE keeping the rest.

The acquisition was partially funded by 165 million pounds by Greencoat U.K. Wind’s credit facility along with a 25 million-pound fixed-rate loan from the Commonwealth Bank of Australia. The London-based wind energy investor also contributed 5 million pounds from its cash reserves.

“This deal further ratifies Greencoat’s strategy of acquiring operational onshore wind assets in the U.K. in partnership with a utility,” said Keegan Kruger, wind analyst at Bloomberg New Energy Finance. “Assuming a 20-year project lifespan, it would amount to about 2.2 million pounds per megawatt when age-adjusted, which is higher than average."

The farm’s three operational units have a combined capacity of 350 megawatts. The Clyde is locked into to the U.K.’s renewable obligation program and will receive one contract for every megawatt-hour generated. The turbines were supplied by Siemens, who will provide operation and maintenance services. The wind farm will continue to be managed by SSE.

RBC Capital Markets LLC advised Greencoat, Greater Manchester Pension Fund and London Pensions Fund Authority on the deal.

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