Centrica and its 50% joint venture partner EIG Global Energy Partners (‘EIG’) have agreed a joint sale of the Glens of Foudland, Lynn and Inner Dowsing wind farms (‘GLID’) to a consortium, comprising the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock, for an Enterprise Value of £423 million. After repayment of debt associated with GLID and other costs, Centrica’s net share of the proceeds will be approximately £115 million.
Glens of Foudland is an onshore wind farm (26MW) located in Aberdeenshire and the Lynn and Inner Dowsing offshore wind farms (194MW) are located off the coast of North East Lincolnshire.
The sale is in line with Centrica’s strategy to dispose of its interests in wind power generation, while continuing to purchase wind power. Centrica will continue to purchase 100% of the power and 50% of the Renewable Obligation Certificates (“ROCs”) from the three wind farms under existing power purchase agreements (“PPAs”) until 2024.
Centrica will continue to provide operations and maintenance support to GLID up to March 2017.
Notes to Editors:
1. GLID Wind Farms TopCo Limited, the holding company of the Glens of Foudland, Lynn and Inner Dowsing wind farms, is a 50/50 joint venture between Centrica (through its wholly-owned subsidiary, GLID Limited) and EIG (through Boreas Holdings S.à.r.l., a company owned by investment funds managed by EIG or its affiliates) that was formed in October 2009 when Centrica sold a 50% equity stake in the Glens of Foudland and Lynn and Inner Dowsing wind farms for £84 million.
2. The 26MW Glens of Foudland onshore wind farm was acquired by Centrica in October 2004 and was fully commissioned in July 2005.
3. Centrica commenced construction of the 194MW Lynn and Inner Dowsing offshore wind farms in 2006 and they were fully commissioned in March 2009.
4. The sale is expected to result in a profit on disposal for Centrica of around £70 million, which is likely to be treated as an exceptional item in the Company’s 2016 Interim financial results.
5. The transaction is expected to be completed during March 2016.