RWE looks to sell down wholly-owned wind assets

03 Apr 14 – RWE [ETR:RWE], the German utility, plans to sell-down its onshore and offshore wind farms in which it owns a stake of more than 50%, a company spokesperson told this news service.

“In terms of renewables, here you have seen in the UK we have sold down most of offshore wind farms. For example, Rhyl Flats we sold 49% down. So far we have sold up to 49% so we just keep the majority stake in them,” she added, speaking at the International Utility Conference in London.

“The company is looking to replicate that model with other wind farms.”

In the UK, RWE holds 100% ownership of the following operational wind farms; Hellrig (9.2MW), Kiln Pit Hill (13.8), Lochelbank (9.6MW), Novar II (36.8MW), Burgar Hill (5.0MW), Bradwell (20.5MW), Hambledon Hill (4.5MW), Bilbster (3.9MW), Knabs Ridge (16.0MW) and The Hollies (2.6MW).

Additionally, it holds 100% stakes in two onshore wind farms in construction; Hambledon Hill extension (7.5MW), and Goole (32.8MW).

In the current market, an onshore wind farm is valued at approximately EUR 2m per MW, a sector banker suggested.

“We keep the operatorship. It doesn’t mean that we wouldn’t be prepared to sell down further but I think most of the time in strategic partnerships we would see ourselves keeping the operatorship,” the spokesperson said. “With some projects we bring investors on board before the asset is operational.”

She added that the capital generated by the sales would be redeployed into other investment projects.

RWE has a market cap of EUR 16.98bn. It reported a net loss of EUR 2.8bn for 2013.

by Katie McQue

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