Greencoat Renewables buys stake in 288-MW German offshore wind farm

Greencoat Renewables PLC (LON:GRP) today said it has agreed to acquire a 22.5% stake in the 288-MW Butendiek offshore wind farm in the German North Sea that has been operating since 2015.

It also announced it has finalised the acquisition of the 25-MW Taghart wind farm in Ireland and the 45-MW Kokkoneva wind farm in Finland, both under a forward sale commitment.

Greencoat Renewables, which is managed by Schroders Greencoat and invests in wind and solar assets in Ireland and some other European markets, is buying the Butendiek stake from alternative investment fund Marguerite Pantheon. No financial details were announced. The deal needs regulatory approval and is expected to close in the current quarter. It increases Greencoat Renewables’ installed capacity to 1,228 MW.

The Butendiek wind farm, which is made up of 80 Siemens Gamesa 3.6-MW turbines, is receiving a fixed-price feed-in tariff (FiT) until December 2023. After that, it will get a floor price for the electricity sold until December 2035, presenting an opportunity to take advantage of the emerging European corporate power purchase agreement (PPA) market, according to the announcement.

“The acquisition of Butendiek demonstrates Greencoat Renewables' commitment to the European offshore wind sector, which plays an increasing role in providing cost-competitive, decarbonated and reliable electricity,” said investment manager Bertrand Gautier.

Butendiek was inaugurated by German renewables developer Wpd AG and its partners in September 2015. In 2017, the project completed a refinancing, raising more than EUR 950 million (USD 1bn) of senior debt from a syndicate of domestic and international banks together with the European Investment Bank (EIB).

(EUR 1 = USD 1.067)

Choose your newsletter by Renewables Now. Join for free!