Construction is scheduled to start next year with a planned capacity of 45Mw when finished. Douglas West will be subsidy free and cost £45mln to construct, which will be paid out of UK Wind’s cash flow. Blue Energy, the vendor, and Natural Power will oversee the construction work.
The acquisition will be the second recently of a wind-farm without government subsidies known as renewable obligation certificates (ROCs).
In October, UK Wind acquired Tom nan Clach a 13 turbine wind farm in Nairnshire, Scotland, which was also subsidy-free and where prices were fixed using a CFD mechanism.
Once up and running Douglas West will increase Greencoat UK Wind’s generating capacity to 910Mw.
Stephen Lilley from the wind fund's manager Greencoat Capital added: "During 2018 we have continued to build our portfolio with investments and commitments totalling over £500mln, of which approximately 70% are in ROC accredited wind farms.
“Although we are starting to see attractive CFD and subsidy-free investment opportunities, 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."