By Brian Donnelly
RENEWABLE energy specialist Greencoat has moved to secure a further wind
farm stake in south west Scotland.
Greencoat UK Wind said it has entered into an agreement to acquire the
Douglas West wind farm from Cheshire-based Blue Energy.
Completion is expected to take place early next year, subject to the
finalisation of construction, operation and maintenance contracts.
Construction is also due to start in 2019, with commercial operations
scheduled for July 2021.
The Douglas West site, seven miles south west of Lanark, will have a total
capacity of 45MW, and will be subsidy free.
Acquisition and construction costs will be about £45 million over the
period from January 2019 to July 2021, which is expected to be funded
through reinvestment of the firm’s excess cash flow.
Portfolio returns remain in line with London-based Greencoat’s investment
objective, it said.
Tim Ingram, chairman of Greencoat UKW, said once operational it would
increase the firm’s capacity to 910MW.
Stephen Lilley, of Greencoat Capital, said: “During 2018 we have continued
to build our portfolio with investments and commitments totalling over
£500m, of which approximately 70% are in ROC (renewables obligation
certificate) accredited wind farms.”
The acquisition of Douglas West follows the recent acquisition of the Tom
nan Clach CFD (contracts for difference) project in the north of Scotland.
In May, Greencoat was also lining up a significant increase in its
investment in the Clyde development in South Lanarkshire after acquiring an
initial stake there in 2016.
Greencoat UK Wind also bought the Langhope Rig wind farm near Hawick for
£39.8m last year, from US giant GE.
The engineering and construction management services at Douglas West will
be provided by Natural Power and Blue Energy.
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