GIB Offshore Wind Fund passes investment milestone
The UK Green Investment Bank (GIB) Offshore Wind Fund has announced that it had passed its initial £1bn investment target, following its sixth UK asset acquisition.
The milestone was reached after the fund paid Centrica plc and Siemens Project Ventures £429m to acquire a 44% stake in the Lincs Wind Farm – a 270 MW project located some eight kilometres off Skegness on the east coast of England – bringing the total value of assets under its control to an impressive £1.12bn.
As part of the deal, Centrica is committed to providing operations and maintenance support to the Lincs project throughout a 12 month ‘transitional period’ – with DONG Energy agreeing to assume responsibility thereafter.
Since its launch, the Fund – which is the first in the world to be focused entirely on investments and acquisitions in offshore wind energy – has enticed a number of new investors into the sector, including the Strathclyde local authority Pension Fund, as well as Swedish life insurance and pension outfit AMF Pensionsförsäkring AB (AMF), a ‘major’ Middle Eastern sovereign wealth fund and the UK GIB.
“Attracting additional capital and creating a liquid market for operating assets is an important step in reducing the cost of offshore wind and supporting the continued growth of the sector. New investors allow the original developers to sell down their stakes and use the proceeds to finance new renewable energy projects,” says Shaun Kingsbury, Chief Executive at the GIB.
By Andrew Williams
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