THE appeal of windfarms in Scotland has been underlined by deals worth around £100 million in total involving investors based outside the country.
London-based Greencoat UK Wind and Chinese-owned Red Rock Power have increased their exposure to Scotland through acquisitions involving three windfarms in total.
Greencoat has clinched deals to buy stakes in the Braes of Doune windfarm near Stirling and the Kype Muir Extension project in South Lanarkshire, for an initial outlay of £100m in total.
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Red Rock Power has acquired the Benbrack onshore windfarm development in Dumfries and Galloway for an undisclosed sum.
The deals involving Greencoat provide further evidence of how much potential the company sees in windfarms in Scotland.
The acquisition of a 50 per cent stake in the Braes of Doune facility for £48m will leave Greencoat with a 100% interest in the asset. Greencoat first invested in the 36-turbine asset in 2013.
The facility benefits from support under the Renewables Obligation Certificate scheme.
Greencoat is paying an initial £51m to buy into the Kype Muir extension and will provide up to £47m finance for the cost of constructing the windfarm. It is expected to come into operation in 2022.
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Greencoat noted that the wind farm is subsidy free but will benefit from a 15-year agreement to sell output at fixed prices to a utility.
Following the deals, Greencoat UK Wind has interests in 12 windfarms in Scotland. It is managed by the London-based Greencoat Capital investment business.
Red Rock Power chief executive Guy Magwick said it was thrilled to be buying into the Benbrack development north of Carsphairn through a deal with RWE. Benbrack is in late-stage development with consent for up to 18 turbines.
Mr Madgwick noted: “Onshore wind remains a stable proposition and affordable source of clean energy and so continues to be a central component of our growth strategy.”
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Edinburgh-based Red Rock is owned by China’s SDIC Power Holdings Co. Ltd.
Greencoat acquired the additional 50% interest in Braes of Doune from funds managed by Federated Hermes. It has agreed to acquire a 49.9% interest in the Kype Muir extension project from Banks Renewables when the windfarm is operational.
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