UK pension investors take stake in EDF Renewables

EDF Renewables has sold a 49% stake in its wind farms to Dalmore Capital and the Pensions Infrastructure Platform (which brings together UK local authority pension schemes). The cash proceeds to EDF at close for the 49% stake are £701 million.

EDF Renewables will continue to run the sites and to provide operations and maintenance requirements as well as asset management services. EDF Energy will continue to purchase all of the electricity and ROCs generated by the wind farms on market standard terms.

Bruno Bensasson, chief executive of EDF Energies Nouvelles said:  “the EDF group aims at doubling its renewable energy generation by 2030 to contribute to energy transition. In this high growth renewables sector, such partnerships are important to allow investment in new projects such as our recent acquisition of the 450MW Neart Na Gaoithe offshore wind farm project in the Firth of Forth. This collaboration underlines the appeal of our business to investment partners.”

Alistair Ray, CIO of Dalmore Capital said: “Dalmore, on behalf of its investors, which include over 2 million UK pensioners, is very pleased to have led this acquisition to become a partner with EDF, a leading global utility, in this asset which makes a significant contribution to the UK’s clean energy supply. We look forward to working in partnership with EDF in delivering clean energy for the UK.”

Mike Weston, chief executive of PIP, said: “Pensions Infrastructure Platform is delighted to be making this investment on behalf of a large UK local authority pension scheme.  This partnership with EDF in a significant renewable energy venture will help our investor meet its pension obligations and contribute to reducing the UK’s carbon emissions.”

The wind farms included in the transaction are:

Onshore ROC wind farms: 
• Corriemoillie (47.5MW) – Highlands, Scotland
• Longpark (38MW) – Borders, Scotland
• Beck Burn ( 31.1MW – Cumbria, England
• Burnfoot Hill (26MW) – Clackmannanshire, Scotland
• Burnhead Moss (26MW) – Falkirk, Scotland
• Pearie Law ( 19.2MW) – West Lothian, Scotland
• Cemmaes (15.3MW) – Powys, Wales
• Walkway (12.6MW) – Durham, England
• Rhodders (12.3MW) – Clackmannanshire, Scotland
• Barmoor (12MW) – Northumberland, England
• Llangwyryfon (9.4MW) – Ceredigion – Wales
• Park Spring (8.6MW) – Barnsley, England
• Broom Hill (8MW) – Durham, England
• Langley (8MW) – Durham, England
• Roade (7.2MW) – Northamptonshire, England
• Fairfield (6.5MW) – Cumbria, England
• Boundary Lane (6.2MW) – Durham, England
• High Hedley 2 (5.2MW) – Durham, England
• Burnfoot North (4.1MW) – Clackmannanshire, Scotland
• Great Orton (4MW) – Cumbria, England
• High Hedley 1 (2.4MW) – Durham, England
• Kirkheaton (1.8 MW) – Northumberland, England

Onshore CfD wind farm: 
• Dorenell (177MW) – Moray, Scotland

Offshore ROC wind farm: 
• Teesside (62.1MW) – North Yorkshire, England
Further reading:

The New Power Interview: Mike Weston, Chief executive, Pensions Infrastructure Platform

Pensions Infrastructure Platform progress report

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