The London-listed renewable infrastructure fund Greencoat UK Wind PLC inked an agreement with Vattenfall Wind Power Ltd to acquire the South Kyle wind farm in Scotland for an amount of 320 million pounds (approx. $398 million), the companies unveiled on Monday.
As part of the agreement, the price is payable once the farm become fully operational that is likely to be in early 2023. For its zero emission climate efforts, Britain has set the target of 2050, requiring it to build more of the renewable power plants.
The wind farm project at South Kyle being acquired by Greencoat is fully-consented and subsidy free that would have a power generation capacity of 240 megawatt with ability to feed the grid with 235 MW of power which will be sufficient to fulfill the power needs of about 170,000 households.
Swedish state-owned Vattenfall finalized its investment decision to build the wind park by installing 50 turbines at a site located to the east of Dalmellington on the boundary of Dumfries & Galloway and East Ayrshire. Vattenfall will construct and manage the project for a time period of 10 years on behalf of Greencoat UK after which Greencoat will take hold of the assets.
But following completion of commissioning work, as part of a power purchase agreement (PPA), Greencoat will be selling power so produced to Vattenfall Energy Trading GmbH, an energy trading arm of Swedish firm, for at least 15 years.
Greencoat is delighted to ink an agreement with Vittanfall that makes it the company’s fifth major utility partner, said Chiarman of Greencoat UK, Tim Ingram, adding that the current project so acquired at South Kyle will be another value addition to company’s portfolio in a vicinity where Greencoat UK already owns several wind farms.
The wind farm is expected to start operating in first quarter of 2023 as per the current plans, but in the presence of government policies in effect to slow the spread of coronavirus, the initial plan could take a bit longer.