RWE Innogy has today agreed terms for the sale of a 10% share in its Gwynt-y-Mor offshore wind farm with the UK Green Investment Bank.
RWE Innogy will generate £220m of new capital as a result of the sale, which will be reinvested into other renewable energy projects within its extensive portfolio.
The transaction will close when the construction of Gwynt-y-Mor is completed, expected to be towards the end of this year.
Dr Hans Bünting, CEO of RWE Innogy said “This is planned to be the second direct investment from the Green Investment Bank into one of our UK offshore wind farms. By continuing to open up our projects to investors, we maintain our stated objective of being a trusted partner for the transformation of the European energy system, within which the UK has a key role. Our aim is to raise additional capital for the extension of renewable energy in Europe by creating attractive investment models. I am delighted that the Green Investment Bank has chosen RWE once again for its investment in the offshore wind sector. This reinforces the quality and attractiveness of our projects”.
Shaun Kingsbury, Chief Executive, UK Green Investment Bank, said:
“The UK has ambitious plans to build on its position as a world leader in offshore wind. We have two roles to play in supporting those plans. Firstly, to directly invest to help developers recycle their capital into the next wave of new renewable energy projects. Secondly, to invest on fully commercial terms to create a demonstration effect which others will follow.”
Gwynt y Môr is a €2billion offshore wind farm on schedule to become fully operational in 2014, when it will be capable of generating enough energy from renewable sources to power the equivalent of approximately 400,000 homes – around a third of the total number of homes in all of Wales.
Press Release, March 31, 2014; Image: rwe