Greencoat Renewables to buy two windfarms in €123m forward contract with Statkraft

Cloghan and Taghart windfarms will have capacities of 37.8MW and 25.2MW respectively

Both wind farms will benefit from 15-year fixed price contracts, secured under the recent RESS 1 auction. Picture: P.J.Browne

Irish renewable infrastructure company Greencoat Renewables has today announced its intention to acquire two, soon to be developed, wind farms in Ireland for a combined value of €123m under a forward contract with Statkraft.

Construction of the windfarms in Cloghan, Co Offaly, and Taghart Co, Cavan are due to begin shortly with the acquisition to be complete once each becomes fully operational, expected to be late 2022.

Greencoat Renewables will acquire the assets from Statkraft under a forward sale model and there is no construction or commissioning risk for the company.

The combined consideration of €123m, due upon acquisition completion implies a price per MW of c.€2m/MW, consistent with the value of other similar assets in the portfolio.

Cloghan and Taghart will have capacities of 37.8MW and 25.2MW respectively (combined 63MW).

Both wind farms will benefit from 15-year fixed price contracts, secured under the recent RESS 1 auction.

Statkraft will continue to provide trading and operational management services to both once operational.

Davy analysts said Greencoat’s latest announcement “demonstrates that the group is well-positioned to be the ultimate owner of much of the next phase of Irish (Renewable Electricity Support Scheme (RESS) backed) wind capacity.” 

"The group looks well placed to continue adding capacity and to expand further the portfolio’s period of contracted revenue. With leverage at c.35% and its revolving credit facility (RCF) effectively undrawn, Greencoat has ample capacity to expand its portfolio further in the new year,” they finished.