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July 2, 2018

EDF Renewables sells £701m stake in 24 UK windfarms

EDF Renewables has announced a new £701m partnership with Dalmore Capital and Pensions Infrastructure Platform (PiP) to sell a 49% minority stake in 24 of its UK windfarms, which generate 550MW of electricity in total.

By Talal Husseini

EDF Renewables has announced a new £701m partnership with Dalmore Capital and Pensions Infrastructure Platform (PiP) to sell a 49% minority stake in 24 of its UK windfarms, which generate 550MW of electricity in total.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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The deal will enable EDF Renewables to develop further projects in the renewable energy sector, in order to achieve its CAP 2030 strategy. This would see the company double its renewable energy generation by that year.

EDF Energies Nouvelles CEO and vice-president in charge of renewable energies Bruno Bensasson said: “Through its CAP 2030 strategy, the EDF group aims at doubling its renewable energy generation by 2030 to contribute to energy transition. In this high growth renewables sector, such partnerships are important to allow investment in new projects such as our recent acquisition of the 450MW Neart Na Gaoithe offshore windfarm project in the Firth of Forth. This collaboration underlines the appeal of our business to investment partners.”

EDF Renewables will retain a 51% share in the windfarms and continue to run the sites, providing operations, maintenance, and asset management services. It will also continue to buy all of the electricity and Renewables Obligation Certificates (ROCs) produced by the UK windfarms.

EDF Energy CEO Simone Rossi said: “This is a positive step for the UK’s low-carbon ambitions and energy resilience. It helps us to continue to invest in more renewables capacity and to extend our operating expertise. With onshore wind, offshore wind and battery projects – including our newly inaugurated offshore windfarm off the Northumberland coast and battery storage plant in Nottinghamshire – we are very pleased to play a major role in this growing part of the UK energy landscape.”

Of the 24 UK windfarms, 22 are located onshore while the two most productive wind farms are situated on the North Sea. The largest is the Dorenell offshore windfarm off the coast of Moray in Scotland, which has a production capacity of 177MW, followed by the Teesside offshore windfarm, which produces 62.1MW. The largest onshore windfarm is Corriemoillie in the Scottish Highlands, at 47.5MW.

PiP CEO Mike Weston told Power Technology: “Since 2016, PiP has invested in a number of renewable energy assets on behalf of UK pension scheme investors, both wind and solar. This latest partnership adds to the long-term, inflation-linked cash flows that appeal to these pension schemes and which PiP is mandated to source for them.”

Dalmore Capital CIO Alistair Ray said of the acquisition: “Dalmore, on behalf of its investors, which include over two million UK pensioners, is very pleased to have led this acquisition to become a partner with EDF, a leading global utility, in this asset which makes a significant contribution to the UK’s clean energy supply. We look forward to working in partnership with EDF in delivering clean energy for the UK.”

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Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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