Centrica sells three wind farms in £423m deal with GIB

Scottish Gas owner Centrica has sold its stake in an Aberdeenshire wind farm as part of a £423 million deal.

The group, along with 50 per cent joint venture partner EIG Global Energy Partners, has sold the 26 megawatt Glens of Foudland site near Huntly, along with two offshore wind farms in Lincolnshire, to a consortium comprising the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock.

Centrica said the enterprise value of the deal was £423m and it expects to book a profit from the sale of about £70m.

It added: “The sale is in line with Centrica’s strategy to dispose of its interests in wind power generation, while continuing to purchase wind power.”

“Centrica will continue to purchase 100 per cent of the power and 50 per cent of the renewable obligation certificates from the three wind farms under existing power purchase agreements until 2024.”

The group, which bought the Glens of Foudland scheme in October 2004, said it would also continue to provide operations and maintenance support to the wind farms until March next year. The deal is expected to complete next month.

Edinburgh-based Green Investment Bank (GIB) said its fund will own a 61 per cent stake in the 194MW, Lynn and Inner Dowsing wind farms, located off the coast of Lincolnshire, with BlackRock-managed funds owning the remaining 39 per cent – marking the first time that operating offshore wind farms in the UK have been 100 per cent owned by non-utility investors.

Complete ownership of Glens of Foudland will be transferred to BlackRock’s funds.

Karl Smith, fund managing director of UK Green Investment Bank Financial Services, said: “The unique partnership that we have entered into demonstrates the ability of the Offshore Wind Fund to capitalise on opportunities presented by the UK offshore wind sector, as well as highlighting the quality of existing assets in UK waters.”

BlackRock managing director Rory O’Connor added: “This landmark transaction demonstrates BlackRock’s significant investment programme in the UK renewables sector. For investors, the sector can provide opportunities for less correlated, inflation-linked, long-duration income and attractive risk-adjusted returns.”