Good Energy offloads 47.5-MW generation portfolio to Bluefield Solar

UK renewable power company Good Energy Group Plc (LON:GOOD) has sold its entire 47.5-MW portfolio of renewable generation assets to Bluefield Solar Income Fund Ltd (LON:BSIF), the firms said today.

Good Energy put the portfolio up for sale in November 2021 as part of its shift to decentralised energy and mobility services. Bluefield Solar bought the assets after a competitive process for up to GBP 24.5 million (USD 33.4m/EUR 29.4m).

The portfolio includes six solar farms with a combined capacity of 30.1 MWp and two wind farms totalling 17.4 MWp, mainly located in South West England.

The sales price comprises an initial equity consideration of GBP 16.4 million and deferred payments of up to GBP 8.1 million, subject to due diligence milestones over the next four to six weeks. The portfolio also has GBP 39.1 million of long-term debt.

Good Energy said the deal is at a premium to the portfolio’s net book value of GBP 17.7 million as of June 30, 2021. The solar and wind parks supply some 15% of its customers’ electricity, with these supplies to continue under power purchase agreements (PPAs).

Good Energy will invest the proceeds into its strategy, which includes participation in the ongoing funding round by its subsidiary electric vehicle (EV) mapping service Zap-Map.

The buyer noted that the portfolio will have about 65% regulated revenues in the 2021-2034 period. Five of the solar plants are accredited under the feed-in-tariff (FiT) regime and one under the Renewable Obligation Certificate (ROC) regime with a tariff of 1.4 ROCs. The wind farms are accredited under the ROC regime at 1 ROC and 0.9 ROCs respectively.

“Not only does this acquisition mark our second purchase of operational wind assets within the space of six months, but it also adds a very attractive portfolio of solar assets with a high proportion of regulated revenues to the Company's significant existing portfolio,” said Bluefield Solar chairman John Rennocks.

The acquisition brought the fund’s total installed capacity to 673 MWp.

(GBP 1 = USD 1.362/EUR 1.201)

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