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Centrica plc is an integrated energy company operating predominately in United Kingdom and North America. In the United Kingdom, it operates three segments: upstream, downstream and storage.
Centrica to start construction of 270 megawatt Lincs Offshore Wind Farm in 2010October 28 2009, 8:05am
Centrica plc (LSE: CNA) announced that its 270 megawatt (MW) Lincs offshore wind project has received final investment approval, and that construction is expected to begin in 2010.
Investment in the wind farm project is expected to total approximately £725 million and the wind farm should start generating power towards the end of 2012. Once the Lincs project is completed, Centrica will have equity interests in operating renewable energy projects with an installed capacity of 650MW.
The Lincs wind farm will be situated eight kilometres off the coast of Skegness next to Centrica’s existing wind farm developments at Lynn and Inner Dowsing and will comprise of 75 3.6MW Siemens turbines. Lincs has planning consent for 250MW with a proposed additional 20MW to be constructed in the footprint of the Lynn and Inner Dowsing wind farm development but connected to the Lincs transmission.
Centrica has entered into agreements to raise approximately £340 million of non-recourse project finance facilities from a consortium of banks including Bank of Ireland, BNP Paribas Fortis, HSBC and Santander.
Centrica also announced that it’s agreed the sale of a 50% equity stake in its Lynn, Inner Dowsing and Glens of Foudland wind farms to the US-based investment management company TCW for a cash consideration of £84 million. TCW is a subsidiary of Société Générale Asset Management.
Centrica is also entering into a joint venture agreement with TCW to govern their ongoing relationship as co-owners of the Lynn, Inner Dowsing and Glens of Foudland wind farms. The agreement contains customary rights for each party to acquire the other party’s shares in the joint venture company at fair market value following a material default by, or on the insolvency of, the other party.
Through its subsidiary British Gas Trading Ltd, Centrica will enter into a 15-year Power Purchase Agreement (PPA) to off-take all the electricity production together with 50% of the Renewable Obligation Certificates (ROCs) generated by the three refinanced wind farms.
Centrica Chief Executive, Sam Laidlaw commented on the company’s latest advancement in its renewable energy strategy:
"Our decision to build Lincs illustrates our continued commitment to develop renewable generation and confirms our position as one of the UK leaders in green energy. The Government’s enhanced financial framework for offshore wind has been fundamental in improving the overall project economics of this development.