A total of 4.1 MW of hydro capacity across six Highland dams at least five years into their working lives changed ownership today, guaranteeing supply of clean power to Scotland’s social housing sector.
Investment trust Triple Point Energy Efficiency Infrastructure (TEEC) told investors it had agreed the purchase of six hydro plants from its parent investment manager, after an independent valuation and the latter’s steps taken to guarantee transparency.
The dams all continue to attract the Feed-in Tariff, the public subsidy for clean generation which closed to new small generators in March 2019. All plants are expected to be still working after their FiT payments end in 2035, whereafter PPA sales including to social landlords are likely, the buyers said.
Long leases, most granted by state body Forestry and Land Scotland, cover the dams, with rents set at a percentage of each dam’s gross income from generation.
Development firm Green Highland Renewables is contracted to operate and maintain the hydro plants.
Three more dams, together valued at just short of £20 million, are expected to be acquired before next April, the buyer told investors today.
Set up in October 2020, the purchasers’ investment focus is on distributed generation, distribution of low carbon heat, retrofitting social housing and boosting the efficiency of industrial energy.
Company chair John Roberts was “delighted that TEEC has acquired the portfolio of Hydro Assets which were first identified ahead of our IPO”.
“(Our) investment manager has identified a number of opportunities to improve the performance of the assets further. We look forward to closing the next phase of this investment soon,” Roberts added.