Climate Change Capital pulls out of SSE deal

A FUND specialising in renewable energy has pulled out of buying Scottish & Southern Energy's (SSE's) stake in a wind farm after it decided against raising the money under current market conditions.

Climate Change Capital said it had postponed a fund-raising that would have allowed it to buy SSE's 50 per cent interest in the Braes of Doune wind farm near Stirling for 61.3 million, as agreed last month. The fund blamed "financial market conditions" for its decision.

SSE owns half of the Braes of Doune facility but electricity generated at the site is used by Scottish Gas-owner Centrica, which holds the remaining stake in the development.

When the sale was agreed, Perth-based SSE said the proceeds would support its plans to invest about 1.7 billion in the current year.

Yesterday, however, finance director Gregor Alexander said that money was not needed for the company's plans.

He said: "While it is disappointing that the sale of Braes of Doune has not been completed, these things have to be looked at in context.

"The asset will continue to deliver revenue for SSE and the proposed proceeds were not required to help fund SSE's investment programme."

In April, SSE sold two Scottish wind farms and one in Northern Ireland for 178.4m. Yesterday, the group confirmed that those sales had been completed.