31 Oct 2016 – Energiekontor AG [ETR:EKT] is selling its Gayton le Marsh onshore windfarm in the UK, a source briefed on the situation and a document seen by this news service said.
The sale was launched into the market in the late summer, the source said. No sell-side advisers have been hired, according to the source and document. The deals market for power and renewables has been quiet since the Brexit vote because of lack of clarity over renewable subsidy allocations, and this is one reason why the deal has not drawn a lot of interest or bids from prospective buyers, the source said.
In April, Mergermarket reported that Energiekontor was considering selling about 40 MW of wind power projects in the UK by the end of 2016. The company has of 86.3 MW operational projects, 8.2 MW in construction, and 80 MW in development, according to its website.
Gayton le Marsh, located near the town of Louth, in Lincolnshire, UK, comprises eight wind farms and has an installed capacity of 16.4 MW. Using the general market rate of GBP 2m per MW, the deal value would stand at about GBP 33m, the document said.
Gayton le Marsh was commissioned in January 2016. It is eligible for Renewables Obligation (RO) subsidies, and also has a 15-year power purchasing agreement (PPA), according to the document.
Energiekontor estimates total income from the wind farm in 2017 to be GBP 5.09m. According to forecasts by consultancy Poyry, the energy price per PPA will be GBP 56.04 /MWh in 2018, and overall remuneration will be GBP 101.71/MWh.
Energiekontor did not respond to a request for comment. The company has a market capitalisation of EUR 216.65m.
by Katie McQue