Greencoat UK Wind PLC (LSE:UKW) has acquired the remaining 20% interest in a portfolio of five UK wind farms from EDF Invest for approximately £10.5 million, taking full ownership of the assets as it outlines plans to expand its investment strategy.
The portfolio has a combined generating capacity of 96.4 megawatts (MW). The transaction has been financed through the company’s net cash generation, rather than additional external funding.
Alongside the acquisition, Greencoat UK Wind has entered into a joint development arrangement to assess potential repowering opportunities across the five wind farms.
Repowering involves replacing or upgrading existing wind generation equipment to extend the operational life of assets or improve their electricity generation capacity.
The company announced the transaction in connection with a capital markets event in London, where management outlined plans to broaden its investment activities beyond the acquisition and ownership of operational wind farms.
Under the revised strategy, Greencoat UK Wind intends to consider selected construction projects, operational life extensions and repowering investments, while retaining operating wind assets as the principal component of its portfolio.
The approach would allow the company to evaluate investment opportunities at different stages of a wind farm’s operational life, including projects involving the replacement or upgrading of existing infrastructure.
Management said the broader investment framework is intended to make use of the group’s existing portfolio, operational experience and internally generated capital.
The acquisition of EDF Invest’s remaining interest gives Greencoat UK Wind full ownership of the five wind farms, providing direct control over ownership decisions relating to their future operation and potential development.
The joint development arrangement will enable the parties to examine options for extending the assets’ operating lives through repowering. No specific development timetable, additional investment commitment or expected generating capacity following repowering was disclosed in the supplied announcement.
Greencoat UK Wind’s investment approach continues to focus on generating income from renewable electricity production, alongside managing the long-term operational performance of its assets.
The company also maintains an inflation-linked dividend policy, supported by cash generated from its portfolio of UK wind farms.
The capital markets event will provide further details of management’s approach to construction investment, asset life extensions and repowering opportunities as part of its wider portfolio strategy.
About Greencoat UK Wind PLC
Greencoat UK Wind PLC (LSE:UKW) is a London-listed renewable infrastructure investment company focused on owning and managing wind farms in the United Kingdom.
The company has developed a portfolio of operational wind generation assets over more than a decade, generating revenue from electricity production.
Its investment strategy centres on established wind farms, with additional opportunities being considered in construction, operational life extension and repowering projects.
Greencoat UK Wind aims to provide shareholders with income through an inflation-linked dividend policy, supported by cash generation from its renewable energy portfolio.
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