Wednesday 16 October 2019

Norwegian utility close to buying Irish windfarm development assets

Norwegian giant Statkraft
Norwegian giant Statkraft
John Mulligan

John Mulligan

A huge portfolio of wind energy development projects in Ireland owned by Element Power could be sold to Norwegian utility Statkraft in coming days.

The Scandinavian company is understood to have entered into exclusive negotiations to acquire a 2.3GW portfolio of development platforms, with 1.7GW of that in Ireland, including rights to a 500MW offshore windfarm project.

Other assets are in the UK, Sweden and Finland.

The development portfolio includes 782MW of projects in late or advanced development and 153MW at pre-financial close, according to industry publication 'SparkSpread', which first reported the talks.

Element Power is backed by US private equity group Hudson Clean Energy Partners.

The power firm has also been developing a 500MW electricity interconnector project, called Greenlink, intended to provide a power link between Co Wexford and Pembrokeshire in Wales.

The interconnector has been subject to a separate sales process.

But Element Power may now instead seek a joint venture partner for that project. Last month it sought tenders for the construction of the 205km interconnector.

It said that it will engage in dialogue with prospective suppliers over the next year, with construction expected to start in 2020.

According to 'SparkSpread', Element Power's development platform also includes 150MW of grid services projects which are likely to reach financial close before the end of the year, and a third-party asset management business with a 285MW portfolio of contracted assets.

Irish Independent

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