Greater Manchester Pension Fund and London Pensions Fund Authority have agreed to increase their shareholding in SSE’s Clyde Windfarm, one of the largest onshore wind farms in Europe.
Their investment vehicle, GMPF & LPFA Infrastructure LLP (GLIL), took a £150m share last year, along with renewable infrastructure fund Greencoat. That deal was for 49.9% of the existing 350MW South Lanarkshire development. It was agreed that equity stake would be diluted to 30% of the new extended scheme, which will see a further 172.8MW come on stream.
The new agreement sees the firms acquire a further 5% (26.1MW) for £67.8million and takes their share in the wind farm to 35%. Next April, Greencoat and GLIL also have the option to buy a further 14.9% stake at a similar rate; 77.8MW for a cash consideration of £202.2 million.
“Both the original Clyde wind farm and the recent extension are complex projects, requiring major investment and a great deal of effort to deliver such efficient assets that make a huge contribution to supplying electricity and reducing carbon emissions across the GB market,” said Martin Pibworth, SSE’s managing director for wholesale.
“The sale of a further stake in Clyde to UKW and GLIL is a natural step in our partnership with them and our commitment to recycle capital where we can see value for SSE.”