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Renewables Infrastructure buys Solwaybank wind farm

Renewables Infrastructure buys Solwaybank wind farm – The Renewables Infrastructure Group has acquired an onshore wind farm in the UK, Solwaybank, located in Dumfries and Galloway, Scotland. Solwaybank is in the early stages of construction and expected to become operational in Q1 2020. Once complete, Solwaybank will comprise 15 Senvion MM100 wind turbines, each with a rated capacity of 2.0MW, amounting to 30MW.

Solwaybank will be one of few onshore wind farms in the UK to benefit from the Contract for Difference tariff (“CfD”) which fixes the power price during the first 15 years of operations. Solwaybank has an allocated strike price of GBP82.50 per MWh in 2012 prices (equivalent to GBP91.14 in current prices).

The project was acquired from TRIG’s Operations Manager, RES, under TRIG’s right of first offer agreement. The total consideration for the project is expected to be approximately GBP82 million, including construction costs. Of this, GBP39 million was invested at acquisition, partly funded through a drawdown of the revolving acquisition facility which now stands at GBP134 million drawn. The project does not have any third-party project level debt.

Following this acquisition, TRIG’s construction exposure is 12% of its portfolio value, measured on a fully invested basis. By the year-end, this exposure is expected to reduce to c.7%.

The manager says that it is evaluating a strong pipeline of investment opportunities in wind and solar assets in the UK, Ireland, France and Scandinavia.

Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said: “Solwaybank is an important addition for the TRIG portfolio, being its first CfD wind farm in the UK. Together with the two French wind farms acquired last week, Solwaybank enhances the Company’s revenue visibility as part of a balanced portfolio. The windfarm is being constructed by RES who have an impressive track record in developing and building renewable energy assets.”

TRIG : Renewables Infrastructure buys Solwaybank wind farm

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