Greencoat Renewables spends €34.5m on Clare wind farm

The Irish company is funding the purchase of Letteragh Wind Farm via its credit facitily.

Renewable energy investor Greencoat Renewables, the State-backed wind farm operator, has bought a 14.1-megawatt (MW) wind farm in County Clare, on Ireland’s west coast for €34.5m.

The group said that the acquisition was being funded by its €380m credit facility and will see Letteragh Wind Farm joining an already impressive portfolio, which now stands at 476MW.

The wind farm consists of six Enercon E92 turbines that have been operational since last December.

“We will continue to work with both international and local developers, providing them with an opportunity to recycle capital into new projects, while enabling us to drive long-term value for our shareholders”

The wind farm benefits from a guaranteed minimum price for the power it produces until 2032 under the Renewable Energy Feed-in Tariff (REFIT) 2 scheme in Ireland. Enercon will remain in charge of operations and maintenance.

The group is managed by Greencoat Capital, an experienced investment manager with a track record in the UK of making acquisitions and delivering strong shareholder returns in the listed renewable energy infrastructure sector.

Last November, Greencoat Renewables paid more than €37m for a 20MW windfarm in Killala, Co Mayo. The same month it paid €10.5m for a 14MW windfarm in Co Donegal, called Beam Hill.

Greencoat Renewables investment manager Paul O’Donnell said; “We are pleased to announce the acquisition of Letteragh wind farm, adding another high-quality wind asset with long-term contracted revenues to our portfolio.

“We will continue to work with both international and local developers, providing them with an opportunity to recycle capital into new projects, while enabling us to drive long-term value for our shareholders,” he added.

Ireland has an EU obligation to ensure that 16 per cent of primary energy use is derived from renewable sources, expected to be largely from onshore wind, by 2020.

By Stephen Larkin

Published: 17 February, 2020