The Walney offshore wind farm is located approximately 15 km off Walney Island, Cumbria, in the Irish Sea in the UK. The wind farm comprises 51 turbines with a total capacity of 367.2MW, which is under construction. After the acquisition, DONG Energy will retain a 50.1% stake and SSE will retain the remaining 25.1% stake it acquired from DONG Energy in December 2009.
"We see this partnership as yet another evidence of the growing interest among financial investors in investing in the maturing offshore wind industry. We also see this transaction as recognition of DONG Energy’s unique expertise in constructing and operating offshore wind farms,” said Anders Eldrup, Chief Executive Officer of DONG Energy.
To acquire the stake in Walney, the consortium will pay DONG Energy a consideration of approximately₤16 million (approximately €19 million) as well as its pro rata share of the construction costs. The purchase price excludes payment for the transmission assets, which are in the future to be owned by a separate transmission operator to be decided by the UK regulator.
Commenting on the acquisition, Henk Huizing, Head of Infrastructure Investments of PGGM, said “This direct investment in clean energy is aligned with the Environmental, Social and Governance criteria in the investment policy for our clients”. Huizing revealed that €1.25 billion of the PGGM Infrastructure Fund 2010-2011 was for social infrastructure transportation, communication and energy projects.
Meanwhile, Joris van der Geest of Triodos Investment Management, Fundmanager Ampère Equity Fund, said: “Offshore wind is a crucial part of the renewable energy mix and an important market for the Ampère Equity Fund. This investment proves the added value of the focus on renewable energy to institutional investors in the Ampère Equity Fund”.
Phase one of the Walney wind farm is expected to be commissioned in 2011. In the Spring of this year, work will also continue on the second phase of the wind farm to lay the foundations and cables, and install the offshore substation. In December, turbines for this second phase will be installed with a view to completing the project in 2012.
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