Wind farm operator Greencoat expects 'significant' expansion

Greencoat Renewables has added to its growing Irish portfolio with the acquisition of the 11.5 megawatt An Cnoc Wind Farm in Co Tipperary and it expects further acqusiitions.

State-backed wind farm operator Greencoat Renewables is anticipating a “significant” level of development activity next year, with it looking at a number of investment and acquisition opportunities in Ireland and mainland Europe.

The company has added to its growing Irish portfolio with the acquisition of the 11.5 megawatt An Cnoc Wind Farm in Co Tipperary and has closed a €200m five-year term loan. 

The acquisition is being funded by the company's existing credit facility.

Much of the new money will be used to pay down existing debt but it also provides Greencoat with additional flexibility for acquisitions.

"The market in Ireland is developing as planned and we expect to see a significant level of activity...Greencoat continues to look at new opportunities both in Ireland, and the wider European market," a company spokesperson said.

“Greencoat’s debt to gross asset value sits at a conservative 45% allowing the group to actively transact both in Ireland and continental Europe," said Goodbody analyst Gerry Hennigan.

Greencoat - which is part-owned by the Ireland Strategic Investment Fund — made its first purchase outside of Ireland, earlier this year, with the acquisition of three wind farms in France.

Belgium, Finland, France, Germany and the Netherlands have long-since been identified as preferred expansion target areas. 

Denmark, Norway and Sweden have since been added to Greencoat's growing list of jurisdictions in which it is keen to invest.

The company is also looking to add solar energy assets to its growing wind farm portfolio and, last month, said it will seek approval at its next general meeting to include Irish solar projects to its investment policy, having seen “the emergence of a growing pool of solar assets in Ireland”.