UK Green Bank And BlackRock Consortium Acquires GLID Wind Farms For £423 million

By Staff Writer

Feb 06, 2016 04:18 AM EST

The UK Green Investment Bank (GIB)'s offshore wind fund and asset manager BlackRock team have reached an agreement to acquire GLID Wind Farms. The £423 million ($615 million) deal involves transfer of 220 MW Glens of Foudland (26 MW), Lynn and Inner Dowsing wind farms (194 MW) or GLID from 'Big Six' utility Centrica and EIG Global Energy Partners.

Under the agreement, GIB will acquire 61% while BlackRock managed fund own the remaining 39% stake in the GLID farms. The latter will also assume ownership of GILD's other operating asset and the 26MW Glens of Foudland onshore wind farm in Aberdeenshire, Scotland, reports Business Green.

However, a power purchase agreement with Centrica has been reported to remain effective as earlier. The utility will purchase all of the electricity produced by both assets and enjoy 50% of the renewable obligation certificates until 2024. The Windsor based British multinational company will also continue to provide operations and maintenance services until March 2017, according to a report published in Bloomberg.

The Lynn and Inner Dowsing offshore wind farms are located off the coast of North East Lincolnshire. Centrica is believed to receive net proceeds of £115 million from the sale repaying debt associated with GLID and other costs. Centrica's selling appears in line with its strategy to dispose of interests in wind power generation while continuing to purchase wind power, reports RTT News.

The deal appears to be first of its kind that involves operating offshore wind farms in the UK owned by non- utility investors. With the acquisition, number of assets owned by the UK Green Investment Bank Financial Services Ltd. (GIBFS) reaches to five. GIBFS's assets, as a whole, will now be capable of producing 3,970 GWh (Giga- Watt hour) of clean power a year.

The agreement also indicates BlackRock's ever growing commitment to the renewable energy sector. The world's largest money managing investment firm now owns and manages 66 wind and solar projects in Europe and North America on behalf of its clients.

Apparently the deal takes place after leading developer DONG Energy has announced building the world's largest offshore wind farm in the coast of Yorkshire. The power producer is expected to provide clean power to more than one million homesteads appearing online by 2020.

The renewable energy sector has witnessed a huge investment from non- utility operations for the first time in the history. According to the agreement announcement the UK Green Investment Bank Financial Services and BlackRock fund are going to acquire GLID Wind Farms for £423 million. The deal appears to take place following DONG Energy's announcement for investing in world's largest windmill.

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