Octopus snaps up 24-MW shovel-ready wind project in France

Octopus Renewables Infrastructure Trust plc (LON:ORIT) said today it has wrapped up the acquisition of a 24-MW shovel-ready wind project in France.

The Cerisou wind farm, to be installed in France’s Vienne department, was purchased from RES SAS, part of UK-based RES Group, for EUR 56 million (USD 65.7m) in cash. The sum includes future construction payments, the buyer said in a bourse filing.

RES will be responsible for the power plant’s construction. To be equipped with eight turbines, the wind park is expected to become operational in the third quarter of 2022. It will generate fixed, index-linked revenues via a premium tariff under France’s DCCR Contract for Difference scheme. The 20-year contract was awarded in 2017.

Following the purchase, Octopus has fully committed the proceeds from its initial public offering (IPO) at end-2019. This is its fifth acquisition since the floatation and its first wind purchase in France.

"The French market is attractive to ORIT as long-term subsidies and political support continue to provide investment opportunities in new build renewable energy assets," said Chris Gaydon, investment director at Octopus.

(EUR 1.0 = USD 1.173)

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