Jan 8 2006
RWE npower, the UK’s leading wind farm developer and operator, has successfully closed a transaction valued in excess of £165m for the transfer of a further four wind energy projects to Beaufort Wind Limited (BWL), of which it is a part owner. The deal marks the completion of the second phase of the £400m pioneering Zephyr investment fund set up in 2004.
Kevin Akhurst, managing director of Generation and Renewables at RWE npower said: “The successful completion of this phase of the Zephyr programme demonstrates our ongoing commitment to wind energy. The funds raised will help bring forward new wind farms like those currently under construction and development by npower renewables. Wind power continues to play a crucial role in the UK’s diverse energy mix.”
The four wind energy projects sold to BWL have a total capacity of 140 megawatts (MW) and include the UK’s first major offshore wind farm, North Hoyle (60 MW), completed in April 2004. The purchase of North Hoyle Offshore Wind Farm is thought to represent the first ‘non-recourse’ project financing of an offshore wind farm in the world and should help attract further investment funds into this developing sector.
The three onshore wind farms making up the balance of the package are: Bears Down Wind Farm (a 10 MW project in Cornwall); Windy Standard Wind Farm (a 22 MW project in Dumfries and Galloway), and Causeymire Wind Farm (a 48 MW project in Caithness). The transactions also involved a refinancing of BWL’s £300m loan facility through a syndicate of 11 banks for whom the Bank of Tokyo Mitsubishi acted as agent. RWE npower will retain a 1/3 stake in these projects through its investment in the Zephyr fund.
In addition, RWE npower will continue to operate and maintain the projects through npower renewables on behalf of the other shareholders. RWE npower’s retail subsidiary, npower, will maintain its buy-back of the power, Levy Exemption Certificates and Renewable Obligation Certificates from North Hoyle and Causeymire under long term purchase contracts.
The output from Windy Standard and Bears Down will be sold under the existing SRO and NFFO contracts as before and the green power from North Hoyle will continue to be sold by npower to its juice customers.
The timely expansion of the Zephyr portfolio to a total capacity of 267 MW (at 15 wind farms) bears witness to the excellent relationships established between all the parties involved with the Zephyr fund and the performance of the wind farms acquired in the first phase of Zephyr in 2004.