The Perth-based group is selling 49.9 per cent of the 350 megawatt Clyde Wind Farm business to renewables investor Greencoat UK Wind and GLIL – a joint venture between the Greater Manchester Pension Fund and London Pensions Fund Authority.
Today’s deal follows a decision by SSE in March 2014 to scale back its investment in wind farms as part of a sell-off programme aimed at bringing in about £1 billion; a target that has now been exceeded.
Martin Pibworth, SSE’s wholesale managing director said: “We are pleased to confirm the sale of a stake in our flagship Clyde wind farm to Greencoat UK Wind and GLIL.
“The sale represents another significant step in a programme of disposals to recycle capital and optimise our wind farm pipeline. The proceeds from this disposal will help to support our future investments in a balanced range of energy assets.”
Under the deal, Greencoat UK Wind will acquire 28.2 per cent of Clyde, with GLIL buying 21.7 per cent, leaving SSE with a 50.1 per cent stake.
The South Lanarkshire operation and consists of the Clyde North, South and Central wind farms, with a total of 152 turbines and a combined generating capacity of about 350 megawatts. SSE will continue to operate the assets, with Siemens providing turbine operation and maintenance.
SSE is in the process of building a 54-turbine extension to Clyde, which will add about 172 megawatts of generating capacity when it is completed in June 2017. Once the extension is finished, the equity stake jointly owned by Greencoat UK Wind and GLIL will be diluted to 30 per cent, with SSE retaining 70 per cent.
Greencoat UK Wind chairman Tim Ingram said: “We are delighted to extend our relationship with SSE and co-own Clyde, one of the largest onshore wind farms in the UK.”
Paddy Dowdall, assistant executive director of Greater Manchester Pension Fund, added: “We are excited to be investing alongside Greencoat UK Wind and SSE in this venture. This investment offers us attractive returns, complements our growing renewable portfolio and continues our commitment to investing directly in British infrastructure.”