A £57.5 million transaction has seen the UK Green Investment Bank (GIB) acquire a 24.95 per cent stake in a RWE AG-owned wind farm.
Rhyl Flats Wind Farm is located approximately five miles off the coast of North Wales. It consists of 25 wind turbines and has a maximum installed capacity of 90MW. According to statistics, the wind farm will provide enough clean, green electricity to satisfy the needs of approximately 61,000 homes every year.
The deal is the third that the GIB has closed since it was set up as a public company in May 2012. The £3 billion government-funded investment vehicle is described as a ‘for profit’ bank, whose mission is to accelerate the UK’s transition to a more green economy.
The bank became fully operational in October 2012 when state aid approval was granted by the European commission.
GIB is acquiring its stake in Rhyl Flats Wind Farm alongside Greencoat UK Wind, which has also taken up a 24.95 per cent interest.
RWE says that by selling a minority stake in the farm, it will raise new capital to invest in other renewable energy projects in the UK.
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Shaun Kingsbury, CEO of the UK GIB, comments, ‘The UK Green Investment Bank is delighted to announce this important investment in the UK offshore wind sector, which is a priority sector for us.
‘Rhyl Flats was an ideal investment for us as it helps to develop the market for buying and selling operating offshore wind assets, allowing the release of capital back to the original developers, which will be invested in new renewable projects in the UK. At the same time as developing a market, this investment will deliver a commercial return to the bank.’
GIB began its 2013 deal-making by providing finance alongside other commercial banks for the construction and operation of waste treatment infrastructure following a contract signing with Wakefield Council. The main site in West Yorkshire will provide facilities to recycle, treat waste and generate sustainable power in the Wakefield District.
Its first deal came back in late December when it supported Drax Group in the completion of the financing required to support its transformation into a predominantly biomass-fuelled electricity generator.
