Centrica sells Lynn and Inner Dowsing offshore wind farms

Thursday, 11 February, 2016 - 10:30

UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock invest £ 423 million in the acquisition of GLID from Centrica and EIG. Hereinafter, Lynn and Inner Dowsing will become UK’s first 100 % non-utility owned offshore wind farms.

The UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock have acquired GLID Wind Farms TopCo Limited (GLID) from Centrica and EIG Global Energy Partners (EIG) in a transaction worth £ 423 million. GLID owns the Lynn and the Inner Dowsing offshore wind farm off the coast of Lincolnshire, England. Each project has 54 turbines and a capacity of 194 MW.

The UK Green Investment Bank Fund will now own a 61 % stake in the offshore projects. The BlackRock-managed funds will own the remaining 39 %. According to the UK Green Investment Bank, the transaction marks the first time that operating offshore wind farms in the UK have been 100 % owned by non-utility investors. Complete ownership of GLID’s other operating asset, the 26 MW Glens of Foudland onshore wind farm in Aberdeenshire, Scotland, will be transferred to the funds managed by BlackRock.

An existing Power Purchase Agreement (PPA) will see Centrica purchase 100 % of the power produced by the wind farms and 50 % of the Renewable Obligation Certificates (ROCs) until 2024. Centrica will continue to provide operations and maintenance (O&M) support to the projects until March 2017.

Karl Smith, Fund Manager, 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.” Rory O'Connor, Managing Director, BlackRock, 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.”

Katharina Garus / Green Investment Bank

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