Wednesday 19 December 2018

Canadian energy firm makes €7m on Bord Gáis wind farm sales

The two wind farms were part of the Bord Gáis Energy portfolio sold by the State three years ago to meet targets set by the Troika. Stock image
The two wind farms were part of the Bord Gáis Energy portfolio sold by the State three years ago to meet targets set by the Troika. Stock image
John Mulligan

John Mulligan

Brookfield Renewable Partners, the Canadian company that acquired Bord Gáis's wind farms for about €700m in 2014, made a $9m (€7.3m) profit selling 20pc of the assets last year, it has revealed.

Brookfield sold 137 megawatts of wind farms in Munster last year to Greencoat Capital for an undisclosed sum.

The farms were the Knockacummer facility in Co Cork, which has 100MW of generation capacity, and the 37.6MW Killhills wind farm in Co Tipperary.

The assets were spun out by Greencoat Capital as a seed portfolio to Greencoat Renewables, which floated on the Irish Stock Exchange last year.

Greencoat is backed by AIB and the Irish Strategic Investment Fund.

The two wind farms were part of the Bord Gáis Energy portfolio sold by the State three years ago to meet targets set by the Troika.

They were bought as part of a larger portfolio of wind assets and projects in development by Brookfield Renewable Partners in a €700m deal.

The Bord Gáis portfolio bought by Brookfield included 321MW of operational assets, a further 100MW under construction and a development portfolio of potentially 300MW.

After the sale to Greencoat last year, Brookfield still had more than 350MW of operating capacity in Ireland and said it remained committed to the Irish market.

Releasing its annual report this week, Brookfield confirmed that it made a $9m gain on the sale of the two wind farms.

Brookfield has a total of 76 wind facilities North America, Europe, Brazil, and Asia. The wind farms have a total of 3,529MW of installed capacity.

Its total wind farm and solar farm assets were valued at $8.6bn at the end of 2017, which included property, plant and equipment of almost $6.9bn.

Brookfield Asset Management had $283bn (€230bn) of assets under management at the end of 2017, across a range of classes from energy to property.

"In the United Kingdom, Brexit stress is offering select opportunities," it noted in its annual report, adding that Europe is looking "slightly stronger than it has for a long time".

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