Pension funds snap up £701m stake in EDF Renewables wind farms
The growing interest from pension funds and infrastructure investors in renewables projects was underlined late last week, as Dalmore Capital Limited and Pensions Infrastructure Platform snapped up a £701m stake in 24 UK wind farms owned by EDF Renewables.
The investment, which sees the firms acquire a 49 per cent minority stake in the 550MWportfolio, was backed with investment from large UK local authority pension schemes.
Under the terms of the partnership EDF Renewables will retain a 51 per cent share in the projects and will continue to run the sites and to provide operations, maintenance, and asset management services.
Parent company EDF Energy will continue to purchase all the electricity and Renewable Obligation Certificates (ROC) generated by the wind farms on market standard terms.
Alistair Ray, CIO of Dalmore Capital, stressed the attractiveness of renewables to pension funds. “Dalmore, on behalf of its investors, which include over two million UK pensioners, is very pleased to have led this acquisition to become a partner with EDF, a leading global utility, in this asset which makes a significant contribution to the UK’s clean energy supply. We look forward to working in partnership with EDF in delivering clean energy for the UK.”
His comments were echoed by Mike Weston, CEO of Pensions Infrastructure Platform, who said the firm was “delighted to be making this investment on behalf of a large UK local authority pension scheme”.
“This partnership with EDF in a significant renewable energy venture will help our investor meet its pension obligations and contribute to reducing the UK’s carbon emissions,” he said.
The wind farms covered by the deal include a host of small and mid-sized onshore wind farms, as well as the 177MW Dorenell wind farm in Moray, Scotland, and 62.1MW Teesside offshore wind farm.