Norwegian state-owned renewable energy company Statkraft has announced plans to construct two wind farms in Ireland and divest them to Greencoat Renewables.

Greencoat Renewables is managed by Greencoat Capital, an investment management firm.

The two wind farms to be constructed are Cloghan (37.8MW) in County Offaly and Taghart (25.2MW) in County Cavan.

As per the terms of the deal, Stakraft will be responsible for the long-term operation and management of the two wind facilities.

The deal is line with the company’s strategy to build, sell, operate and trade power.

Construction works at the two sites will begin early next year. The assets will be transferred to Greencoat Renewables, once the wind farms enter an operational phase in 2022.

The project’s total value including construction costs stands at €123m.

Statkraft Ireland managing director Kevin O’Donovan said: “Statkraft is playing a leading role in the global transition to a low carbon future and I am really pleased to see the financial partnership with Greencoat Renewables contributing to delivering Ireland’s carbon reduction targets.”

Earlier this year, the company secured 15-year fixed-price contracts for the two wind projects and two solar projects in an auction under the government’s new Renewable Electricity Support Scheme (RESS-1).

Greencoat Capital partner Paul O’Donnell said: “Securing our first assets under RESS is an important milestone for us as the RESS auctions will continue to support the growth of the Irish renewables market.

“We expect this combination of contracted revenues and forward-purchases to become commonplace in both Ireland and Europe over the next few years, and we believe Greencoat Renewables is well-positioned given our scale and the strength of our relationships.”

Last month, Statkraft announced its acquisition of UK solar panel manufacturer Solarcentury.