Greencoat UK Wind plc (LON:UKW) has this morning announced that it has entered into an agreement with Vattenfall Wind Power Ltd to acquire South Kyle wind farm for a headline consideration of £320 million, which will be due upon completion, scheduled for Q1 2023, once the wind farm commences commercial operations.
South Kyle is located 5km to the east of Dalmellington on the boundary of Dumfries & Galloway and East Ayrshire in Scotland. It will consist of 50 turbines with aggregate generating capacity of 240MW and a grid connection of 235MW. The wind farm is fully consented.
South Kyle is a subsidy free wind farm and it has entered into a route-to-market PPA with Vattenfall Energy Trading GmbH for the 15 years following commissioning. Vattenfall will construct the wind farm and will manage the asset on behalf of Greencoat UK for a minimum of 10 years once operational.
In addition to supporting the local economy through new jobs created, once operational, the wind farm will provide £38 million of direct investment into local schemes through its community benefit programme over the lifetime of the wind farm.
Tim Ingram, Chairman of UKW, commented: “We are delighted to enter into an agreement with Vattenfall, our fifth major utility partner. South Kyle is in close proximity to a number of other wind farms already owned by Greencoat UK Wind, and we are confident it will be another high quality addition to our portfolio.”
Laurence Fumagalli of Greencoat Capital LLP added: “We are pleased with the transaction, which will bring a large scale subsidy free wind farm under our ownership. While we continue to expect the majority of our portfolio to comprise ROC accredited assets, the scale of our portfolio and balance sheet allows us to acquire a combination of different types of UK wind farms, such as South Kyle, and thereby find best value for shareholders.”
