Octopus Renewables Infrastructure (ORIT) has announced that it has purchased an additional 7.75% stake in the Lincs offshore wind farm from a fund managed by Macquarie Asset Management. This follow-on investment is in addition to the initial 7.75% stake in this wind farm that ORIT acquired in May 2022. Following this transaction, Lincs represents approximately 16% of ORIT’s capital. wallet based on gross asset value. In a separate transaction, ORIT has agreed to acquire the Leeskow onshore wind farm from German developer UKA. As part of these acquisitions, a subsidiary of ORIT entered into a £50 million credit facility with existing lender Natwest. The facility matures in November 2023 to match ORIT’s existing revolving credit facility.
The Lincs Offshore Wind Farm
Located off Skegness, north of the wash off the east coast of England, the Lincs Offshore Wind Farm has been operational since 2013 and generates long term fixed price inflation linked revenue from the UK. united. ROCK (Renewables Obligation Certificate), under which the wind farm receives 2 ROC per megawatt hour of electricity production during the first 20 years of operation. The wind farm has an installed capacity of 270 MW, consisting of 75 turbines of 3.6 MW each (spread over approximately 35 square kilometers) connected to an offshore substation (the offshore substation is then connected via 2 cables of export to a network connection point located in Warpole). The wind farm is operated and managed by Ørsted, the largest energy company in Denmark, and one of the leading developers and operators of offshore wind farms in the UK and worldwide. ORIT’s latest investment in Lincs comes with a co-investment from another fund managed by Octopus Energy Generation, Sky (ORI SCSp), which acquired an indirect 7.75% stake in Lincs as part of of this transaction. Following this transaction, funds managed by Macquarie Asset Management retain a 44% stake in Lincs. The site consists of 75 wind turbines of 3.6 MW.
Leeskow onshore wind farm
The Leeskow onshore wind farm is a 34.6 MW operational wind farm located in Brandenburg, northeast Germany, which consists of seven Nordex N149 turbines, one of which was commissioned in August 2020, due to receiving its permit earlier than the other six which were commissioned in August and September of this year. Leeskow has benefited from a floor price supported by the government for twenty years under the German EEG scheme. The investment is not exposed to fluctuations or ceilings in wholesale electricity prices in the short or medium term. Leeskow has long-term debt financing with fixed interest rates, and completion is expected to take place in the fourth quarter of 2022 after receiving consent from the lenders for the change of ownership. When completed, Leeskow will represent approximately 8% of ORIT’s portfolio based on gross asset value1.
Comments from Phil Austin, President of Octopus Renewables Infrastructure
“Wind energy is a key pillar of the UK and EU energy systems. Today’s investment in the Lincs offshore wind farm brings ORIT’s position in this important operational offshore wind farm to 15.5% and our commitment to Leeskow marks our first investment in German onshore wind. »
Comments from Chris Gaydon, Chief Investment Officer at Octopus Energy Generation
“These acquisitions of operational assets further increase the diversification in ORIT’s portfolio, including the addition of a new country. Both assets add to the proportion of fixed price electricity revenues in the portfolio, with the Leeskow acquisition based on electricity prices well below the recently announced EU cap.
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