InfraRed/Co-operative Twin Rivers wind farm up for sale – sources

21 Oct 2016 – InfraRed Environmental Infrastructure Fund and the Co-operative Group have put their Twin Rivers onshore wind farm up for sale, two sources briefed on the situation and one person familiar said.

Twin Rivers is 50:50 owned by both companies, and is located near Goole in Yorkshire, UK. It has an installed capacity of 28.2 MW and has 14 turbines, according to the sources. The entire wind farm is for sale, they added.

Twin Rivers could be valued at about GBP 2m per MW, equating to around GBP 56m, the first source said.

This is a comparatively small deal, but is unlikely to be finalised soon, as it has not gained much traction with the market, the source said.

The Brexit vote has triggered uncertainties for renewable generation, as a weak pound means lower returns on investments, this source added. As the UK may no longer needs to conform to EU carbon directives, renewables subsidies might be left to the decisions of the UK government, impacting investor confidence, he commented. 

Twin Rivers is due to begin commercial operations this month, and will run until October 2040, according to the second source.

Its construction was funded by a GBP 30m short-term debt from Close Brothers Group [LON:CBG]. However the loan has been paid by the InfraRed and the Co-operative group, so no debt is attached to the sale, according to the second source.

Twin Rivers has a two-year power purchase agreement in place with the Co-operative Group, the second source added. Energy yield from the wind farm is estimated at 71.8 GWh per year.

InfraRed declined to comment The Co-operative Group did not respond to a request for comment. 

by Katie McQue

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