Entering France’s stable and supportive tariff environment
GRP says the assets will benefit from France’s stable and supportive tariff regime which guarantees a fixed price for the electricity produced by the asset. All assets will benefit for fixed price Feed in Tariff (FIT) with a weighted average remaining FIT of 12.3 years.
The acquisition will close following French regulatory approval and will be funded by the company’s €380m credit facility. Following the acquisition, Greencoat Renewables’ total borrowings will represent 43% of gross asset value.
The portfolio comprises:
- Passilly – 20.0MW wind farm commissioned in September 2016 consisting of 10 Gamesa 2.0MW turbines, located in the Burgundy region;
- Sommette – 21.6MW wind farm commissioned in December 2017 consisting of 9 Nordex 2.4MW turbines, located in the Picardy region;
- St Martin – 10.3MW wind farm commissioned in June 2018 consisting of 5 Senvion 2.05MW turbines, located in Saint-Martin-l’Ars.
Manager’s view
Bertrand Gautier, GRP’s manager, said: “Consistent with our long-term strategy, we are pleased to be making our first investment into the French wind market. The assets benefit from France’s stable regulatory regime, with the fixed-price Feed-in-Tariff guaranteeing power prices for the next 12.3 years. Our existing portfolio already has 97% of its cashflows contracted under REFIT until Jan 1 2028, and this acquisition further extends the proportion and duration of our fixed-price revenues.
The acquisition will bring gearing to 43%, which is towards the lower end of our target range and will provide flexibility to pursue further opportunities as they arise. We are also pleased to have partnered with John Laing, again demonstrating our ability to transact with leading investors and developers across the sector.”
About GRP
GRP is an investor in euro-denominated renewable energy infrastructure assets. Initially focused solely on the acquisition and management of operating wind farms in Ireland, the company is now also considering expansion into wind and solar assets in certain other Northern European countries with stable and robust renewable energy frameworks.
GRP: Greencoat Renewables to make first investment into continental Europe with 51.9MW France deal