The sale is in line with SSE’s strategy to create value from the development and operation of renewable assets and to recycle capital at the right opportunities
SSE Renewables has agreed to sell its 100 per cent interest in the 18.8MW Slieve Divena II Wind Farm in Northern Ireland to Greencoat UK Wind for a total consideration of £51 million.
Slieve Divena II was developed by SSE Renewables near Ballygawley, Co. Tyrone, and comprises eight 2.35MW Enercon E-92 wind turbines. The wind farm entered commercial operation in 2017 and has 0.9/MWh Renewable Obligation Certificates under Northern Ireland’s support scheme. The wind farm is adjacent to the 30MW Slieve Divena wind farm, which Greencoat acquired in 2017.
Slieve Divena II is capable of generating enough clean, green energy to power 16,300 homes*. The wind power generated at Slieve Divena II is helping to off-set around 15,200 tonnes of harmful CO2 emissions every year*, contributing to Northern Ireland’s carbon reduction targets.
The transaction is expected to complete by the end of March 2020. SSE intends to use the proceeds to reduce net debt.
SSE Renewables is entering into an Asset Management Agreement to manage the wind farm on behalf of Greencoat following the sale while SSE’s retail arm in Ireland, SSE Airtricity, will continue to have the offtake of the green energy generated at the site. SSE Airtricity will continue to operate the annual Community Fund for Slieve Divena II on behalf of new owners, Greencoat.
This sale demonstrates SSE Renewable’s ability to develop high quality, low carbon assets and infrastructure vital to the transition to a low carbon economy. The sale is in line with SSE’s strategy to create value from the development and operation of renewable assets and to recycle capital at the right opportunities.
Jim Smith, Managing Director of SSE Renewables, said:
“The sale of Slieve Divena II to Greencoat UK Wind extends our longstanding relationship with Greencoat as a renewable investment partner on wind energy assets in the UK and Ireland. This sale is a further example of how SSE Renewables is creating high quality assets aligned with the transition to a low carbon economy. Strategic asset disposals are in line with our longstanding approach to create value from the development and operation, as well as ownership, of renewable energy assets, and supports our ongoing future investment strategy to develop and build more onshore and offshore wind farms in our core markets of the UK and Ireland.”
Tim Ingram, Chairman of Greencoat UK Wind, commented:
“We are delighted to acquire our eighth wind farm from SSE Renewables, which is testament to the longstanding relationship we have developed. Slieve Divena II is a high quality, ROC-accredited asset sitting alongside our Slieve Divena wind farm and is a natural addition to our portfolio of operating UK wind farms, which now has a net generating capacity of almost 1GW.”
Following this transaction SSE Renewables will own 689MW of onshore wind farms on the island of Ireland, supplying low carbon electricity from the largest renewable energy portfolio in Ireland to the country’s all-island energy market.
*Total annual homes powered quoted based on installed capacity, typical load factor and typical annual consumption (3,200kWh); Quoted CO2 emissions abated based on Average CO2 Emissions in 2018 (0.291 t/MWh) in the All-Island Single Electricity Market, and published by the Utility Regulator in its Fuel Mix Disclosure and CO2 Emissions for 2018, September 2019.
Source: Company Press Release