• UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock invest £423m in the acquisition of GLID from Centrica and EIG
• Lynn and Inner Dowsing offshore wind farm will now be 100% owned by non-utility investors – a first for the UK
• Complete ownership of the Glens of Foudland onshore wind asset will transfer to the BlackRock-managed funds
• Existing power purchase agreements with Centrica will remain in place
The UK Green Investment Bank Offshore Wind Fund and associated parallel funds (the Fund) and funds managed by BlackRock have acquired GLID Wind Farms TopCo Limited (GLID) from Centrica and EIG Global Energy Partners (EIG) in a transaction worth £423m.
The Fund will now own a 61% stake in the 194 MW, 54 turbine Lynn and Inner Dowsing offshore wind farms, located off the coast of Lincolnshire. The BlackRock-managed funds will own the remaining 39% of the projects.
The transaction marks the first time that operating offshore wind farms in the UK have been 100% owned by non-utility investors.
Complete ownership of GLID’s other operating asset, the 26 MW Glens of Foudland onshore wind farm in Aberdeenshire, Scotland, will be transferred to the funds managed by BlackRock.
An existing power purchase agreement (PPA) will see Centrica purchase 100% of the power produced by the wind farms and 50% of the Renewable Obligation Certificates (ROCs) until 2024. Centrica will continue to provide operations and maintenance (O&M) support to the projects until March 2017.
The Fund, managed by UK Green Investment Bank Financial Services Limited (GIBFS), is the largest private renewable energy fund in the UK with current capital commitments of £818m. Its portfolio now consists of five assets (see notes to editors) that, taken together, are capable of producing 3,970 GWh of net renewable electricity annually.
BlackRock’s infrastructure business has $8.3bn in investment and committed capital, including more than $2bn in equity capital focused on investment in renewable power projects via four funds and associated co-investment programmes. It currently owns and manages 66 wind and solar projects in Europe and North America on behalf of its clients.
Karl Smith, Fund Manager, UK Green Investment Bank Financial Services, said:
The unique partnership that we have entered into demonstrates the ability of the Offshore Wind Fund to capitalise on opportunities presented by the UK offshore wind sector, as well as highlighting the quality of existing assets in UK waters.
Rory O'Connor, Managing Director, BlackRock, said:
This landmark transaction demonstrates BlackRock’s significant investment programme in the UK renewables sector. For investors, the sector can provide opportunities for less correlated, inflation-linked, long-duration income and attractive risk-adjusted returns.
Notes to editors
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At December 31, 2015, BlackRock’s AUM was $4.645 trillion.
BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®.
As of December 31, 2015, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa.
About UK Green Investment Bank Financial Services
UK Green Investment Bank Financial Services Limited is authorised and regulated by the Financial Conduct Authority. The company is a wholly owned subsidiary of UK Green Investment Bank plc, which is wholly owned by HM Government. UK Green Investment Bank plc is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority.
Assets belonging to the UK Green Investment Bank Offshore Wind Fund
Rhyl Flats. A 90 MW, 25 turbine wind farm operated by RWE Innogy UK off the coast of North Wales. It has been operational since December 2009. UK Green Investment Bank plc (GIB) sold its full 24.95% equity stake in the wind farm to the Fund in April 2015.
Sheringham Shoal. A 317 MW, 88 turbine wind farm operated by Statkraft and located in the Greater Wash area off the coast of Norfolk. It has been operational since October 2012. GIB sold its full 20% equity stake in the wind farm to the Fund in April 2015.
Gwynt y Môr. A 576 MW, 160 turbine wind farm operated by RWE Innogy UK located off the coast of North Wales. It is the second-largest operating offshore wind farm in the world and has been operational since June 2015. GIB sold its full 10% equity stake in the wind farm to the Fund in October 2016.
Lynn and Inner Dowsing. A (combined) 194 MW, 54 turbine wind farm operated by Centrica. Located off the coast of Lincolnshire, it has been operational since March 2009. The Fund acquired a 61% stake in the wind farm in February 2016.