logo-loader
viewGreencoat UK Wind PLC

Greencoat UK Wind plans to spend £126mln on wind farm in northern Scotland

The Vestas V112 turbines are capable of generating 39.1 megawatts of electricity

wind turbine
Currently under development, the operation will be formally handed over to Greencoat next July, a month after its completion

Greencoat UK Wind PLC (LON:UKW) is spending £126mln on a 13-turbine wind farm in northern Scotland.

It is acquiring Belltown Power’s 75% stake in Tom nan Clach, in Nairnshire.

READ: Greencoat UK Wind makes sure-footed progress

Currently under development, the operation will be formally handed over to Greencoat next July, a month after its completion.

The Vestas V112 turbines are capable of generating 39.1 megawatts of electricity, while the load factor is expected to be 48%.

15-year CFD

Interestingly, the project will benefit from a 15-year contract for difference (CFD).

These are long-term deals that enable generators such as Greencoat to stabilise revenues at a pre-agreed level for the duration of the contract.

The purpose of CFD is to incentivise investments in new low-carbon electricity generation by providing predictability of future revenue streams.

They are an alternative to existing green incentive scheme based around renewable obligation certificates, or ROCs.

“We are starting to see attractive CFD and subsidy-free investment opportunities, of which Tom nan Clach is our first. These opportunities will complement our core ROC investments and simple, low risk fund structure,” said chief executive Stephen Lilley.

“Reflecting the overall shape of the market, we expect the majority of future investments will continue to be made from the £50bn pool of UK wind farms accredited under the ROC regime."

Quick facts: Greencoat UK Wind PLC

Price: 147.4 GBX

LSE:UKW
Market: LSE
Market Cap: £2.28 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Greencoat UK Wind PLC named herein, including the promotion by the Company of Greencoat UK Wind PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Greencoat UK Wind close to powering 1 mln UK homes as size of portfolio surges

Greencoat UK Wind’s (LON:UKW) manager Stephen Lilley was happy with the first half performance even though wind speeds were slightly lower than expected. The group bought four assets over the first half of the year worth £611mln, including its first deal for an asset without a ROC...

on 29/7/19

2 min read