Spain’s Repsol to divest offshore wind power stakes in UK for €238m

25 February 2016 (Last Updated February 25th, 2016 18:30)

Spanish energy company Repsol has agreed to divest its offshore wind power stakes in the UK to SDIC Power of China for €238m.

Spanish energy company Repsol has agreed to divest its offshore wind power stakes in the UK to SDIC Power of China for €238m.

The sale is in line with the company's strategy to offload its non-strategic assets between 2016 and 2020 to raise €6.2bn.

As per the deal, Repsol will sell its 100% stake in Inch Cape project and a 25% stake in the Beatrice project.

Located on the east coast of Scotland, Inch Cape and Beatrice have an installed capacity of around 784MW and 588MW respectively.

"The power generated at Beatrice project will be enough to cater to the electricity needs of approximately 477,610 homes."

Inch Cape Offshore Limited, a joint venture company formed by Repsol Nuevas Energías UK and EDP Renewables UK, received consent in October 2014 to develop the Inch Cape offshore wind farm and associated offshore transmission works.

Once operational, the 110-turbine Inch Cape project is expected to generate more than 2,000GWh of clean electricity annually.

Besides Repsol, UK utility SSE and Copenhagen Infrastructure Partners (CIP) own the Beatrice offshore wind project with 40% and 35% stakes, respectively.

The project was consented by Marine Scotland in March 2014, and granted an investment contract by the UK government in May 2014.

The power generated at Beatrice project will be enough to cater to the electricity needs of approximately 477,610 homes.

Repsol expects to generate a post-tax capital gain of €109m.

The company finalised divestments worth more than €2.5bn in the last five months.