SDCL Energy buying 69-MW bundle of UK wind, solar, hydro assets
UK solar park. Author: Robert Pittman. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
Britain's SDCL Energy Efficiency Income Trust Plc (LON:SEIT), or SEEIT, said today it has agreed to buy a 69-MW portfolio of on-site renewable power plants in England, the bulk of which are solar photovoltaic (PV) parks.
The assets are being sold by United Utilities Group Plc (LON:UU) for some GBP 100 million (USD 119.5m/EUR 118.3m). As part of the proposed deal, SEEIT will buy 100% of United Utilities Renewable Energy Ltd -- the vendor’s unit that currently holds the assets.
The target portfolio consists of solar, wind and hydropower plants (HPPs) located across 70 sites in the Northwest of England. While 90% of the overall capacity comes from solar parks, 9% of the portfolio is made of wind farms, while HPPs account for 1%. All plants generate electricity for United Utilities Water Ltd, the regulated water and wastewater business of United Utilities Group.
Some of the facilities benefit from 20-year Feed-in-Tariff (FiT) contracts under the UK government’s support programme.
"SEEIT is acquiring an operational on-site portfolio of scale with an investment grade counterparty, which will increase its exposure to the UK, enhancing its overall diversification by geography, technology, and counterparty," said Jonathan Maxwell, CEO of Sustainable Development Capital LLP, SEEIT's investment manager.
The transaction, to be financed from SEEIT’s existing resources, is subject to customary approvals and is expected to be finalised in the next few months.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.