InfraRed Infrastructure Fund III (the “Fund”) has completed the sale of its investment in Afton Wind Farm to Red Rock Power Limited (an Edinburgh based energy investment and holding company and 100% subsidiary of SDIC Power, a Chinese power company), following confirmation from OFGEM that the wind farm has been accredited under the UK’s Renewables Obligation scheme.
The development rights to the wind farm were acquired from E.ON in September 2016 and the Fund committed c.£80m to the development of the project. The wind farm has a 50MW capacity and comprises 25 x 2MW Gamesa turbines. The power is sold under a 15-year agreement with the Danish trading house NEAS (a 100% subsidiary of the Centrica Group). The realisation of Afton Wind Farm has achieved a strong investment return for the Fund over its 25 month holding period.