Iberdrola Looking To Sell 49 Pct Stake In UK Offshore Wind Farm – Report
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Iberdrola has begun exploring the sale of 49 per cent of its East Anglia Two offshore wind farm project in the UK, according to a report by the Spanish media outlet Cinco Días citing unnamed sources.
These four paragraphs give more details.
The renewable energy developer has already engaged Bank of America and BBVA as financial advisors to assist with the potential transaction, Cinco Días writes.
Iberdrola’s interest in selling a nearly half stake in East Anglia Two mirrors previous deals in the East Anglia portfolio, where the company has brought in financial partners in two other phases, East Anglia One and East Anglia Three.
The 714 MW East Anglia One offshore wind farm is owned by Iberdrola’s UK arm ScottishPower Renewables and Macquarie’s Green Investment Group (GIG), with Octopus Energy having acquired a 10 per cent stake from GIG this April. East Agnlia One has been in operation since 2021.
In July this year, Iberdrola and UAE clean energy company Masdar announced what the companies said was the largest offshore wind transaction of the decade as they signed an agreement to co-invest in the 1.4 GW East Anglia Three project, currently under construction.
But then being bought and sold is the way of life for an offshore wind farm.
In 2018, I wrote World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, which contains this extract from the Times says this about the funding of wind farms.
Wind farms throw off “long-term boring, stable cashflows”, Mr. Murphy said, which was perfect to match Aviva policyholders and annuitants, the ultimate backers of the project. Aviva has bought fixed-rate and inflation-linked bonds, issued by the project. While the coupon paid on the 15-year bonds, has not been disclosed, similar risk projects typically pay an interest rate of about 3 per cent pm their bonds. Projects typically are structured at about 30 per cent equity and 70 per cent debt.
Darryl Murphy is Aviva’s head of infrastructure debt. The article also says, that Aviva will have a billion pounds invested in wind farms by the end of the year.
I wonder how long it will be before individual investors can fund their pensions, with a direct investment in a wind farm?
- The wind farm would surely be a better investment if it had an integrated battery to supply power, when the wind didn’t blow.
- It would probably also be a safer investment, if it had been generating electricity for some years.
After all, at the present time, you can invest in batteries through companies like Gresham House and Gore Street.
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