Greencoat UK Wind to buy Scottish asset for close to USD 400m

Renewable infrastructure fund Greencoat UK Wind Plc (LON:UKW) has agreed to acquire a fully-consented, zero-subsidy wind project in Scotland with an aggregate generating capacity of 240 MW and a grid connection of 235 MW.

Specifically, Greencoat UK Wind will buy the South Kyle wind farm from Vattenfall Wind Power Ltd for a headline consideration of GBP 320 million (USD 398m/EUR 367m). The price will be paid upon completion of the project, which is expected in the first quarter of 2023.

Vattenfall will build and manage the wind park, installing 50 turbines at a site located to the east of Dalmellington on the boundary of Dumfries & Galloway and East Ayrshire. The project has a route-to-market power purchase agreement (PPA) with Vattenfall Energy Trading GmbH for a term of 15 years following commissioning. It comes with a community benefit programme that will result in GBP 38 million of direct investment into local schemes over the lifetime of the plant.

"While we continue to expect the majority of our portfolio to comprise ROC accredited assets, the scale of our portfolio and balance sheet allows us to acquire a combination of different types of UK wind farms, such as South Kyle, and thereby find best value for shareholders," stated Laurence Fumagalli of Greencoat Capital LLP, which manages UKW.

(GBP 1.0 = USD 1.242/EUR 1.146)

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