Solwaybank will be one of few onshore wind farms in the UK to benefit from the attractive Contract for Difference tariff (“CfD”) which fixes the power price during the first 15 years of operations. Solwaybank has an allocated strike price of £82.50 per MWh in 2012 prices (equivalent to £91.14 in current prices).
The project was acquired from TRIG’s Operations Manager, RES, pursuant to TRIG’s right of first offer agreement. The total consideration for the project is expected to be approximately £82 million, including construction costs. Of this, £39 million was invested at acquisition, partly funded through a drawdown of the Group’s revolving acquisition facility which now stands at £134 million drawn. The project does not have any third-party project level debt.
Following this acquisition, TRIG’s construction exposure is 12% of its portfolio value, measured on a fully invested basis. By the year-end, this exposure is expected to reduce to c.7%.
The Investment Manager is evaluating a strong pipeline of investment opportunities for the Company in wind and solar assets in the UK, Ireland, France and Scandinavia.
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said:
“Solwaybank is an important addition for the TRIG portfolio, being its first CfD wind farm in the UK. Together with the two French wind farms acquired last week, Solwaybank enhances the Company’s revenue visibility as part of a balanced portfolio. The windfarm is being constructed by RES who have an impressive track record in developing and building renewable energy assets.”
For the RNS issued by TRIG, please follow the link.
