UK (Commonwealth) _ The green energy producer Greencoat Renewables, which is listed on the stock market, intends to sell five of its fully owned onshore wind farms in Ireland in addition to its ownership interest in another asset.
The group probably intends to utilize the sale’s revenues to pay down debt and repurpose the money for other initiatives. It will continue to have a major presence in Ireland. Industry journal PeakLoad, which originally revealed the impending asset sales, claims that KPMG has been recruited to investigate potential bidders.
Details of the assets match wind farms that Greencoat Renewables owns in Ireland, even though KPMG did not identify the seller. Greencoat refused to respond to a question.
According to PeakLoad, three wind farms in County Cork—the 13.3 MW Ballincollig Hill facility, the 9.3 MW Garraneragh wind farm, and the 100 MW Knockacummer asset—are among the assets being prepared for sale. They also comprise the 9.2MW Knockalour asset in County Wexford, the 20MW Gortahile wind farm in County Laois, and the 14MW Beamhill wind farm in County Donegal.
In July 2017, Greencoat went public on the London Stock Exchange’s AIM market and the Euronext Growth Market of Euronext Dublin. The company is now allocated to renewable energy generating and storage assets located in the Republic of Ireland, Finland, France, Germany, Spain, and Sweden.
39 fully or partially owned assets with a net installed capacity of more than 1.5GW are included in its entire portfolio. It has committed to purchase a further 90MW of assets under the forward sale mechanism of the business.
Greencoat is valued at around €1.1 billion on the market. Its total group debt was just over €1.3 billion as of the end of June of this year, while its gross asset worth was somewhat less than €2.6 billion. By the end of the month, the shares were selling for about 23 percent less than their net asset value.
The company’s net cash created in the first half of this year was €113.6 million, or three times the dividend cover. It anticipates paying out over €100 million to shareholders by the end of the year through increased dividends and a €25 million share repurchase program.
PeakLoad said that Beam Hill, which was put into service in 2006, is the oldest asset offered for sale by KPMG. Under a power purchase agreement, it will generate income through the end of 2026. Launched in late 2014, the Knockacummer wind farm is the most recent asset being prepared for sale.
Greencoat said that their asset recycling program is “progressing well” throughout the summer.
PeakLoad reported that REFIT-1 tariffs, which are set to expire in March of 2027, are still applicable to all of the wind farms in Ireland that Greencoat is selling. These tariffs set a minimum price for each unit of electricity that producers of renewable energy export to the grid.
The assets in the portfolio are being marketed by Greencoat Renewables as a life-extension or repowering opportunity, with the ability to extend lease terms by five years at all but one of the sites.
An investment firm called Greencoat Renewables PLC mainly makes investments in renewable energy infrastructure and wind farms in Europe priced in euros and Irish currency. In addition to being listed on the London Stock Exchange as the FTSE 250, the company was founded in 2017 and is primarily listed on the Irish Stock Exchange, where it is a component of the ISEQ 20 index.Greencoat Renewables PLC and its sibling firm Greencoat UK Wind are managed by Greencoat Capital LLP.
The corporation had 49 wind farms in the UK as of April 2024, more than half of which were wholly owned by it.Situated 75 miles out into the North Sea, it has a 12.5% share in the Hornsea One Wind Farm.The total portfolio of Greencoat produces about 1.5% of the home power consumption in the UK.
The firm produced 1,154GWh from its 15 Irish wind farms in the year ending December 31, 2019, and as of December 31, 2019, its market capitalization was €747.3 million.
The firm said in October 2020 that it had successfully acquired the An Cnoc wind farm located in County Tipperary, Ireland. The business said in November 2020 that it will be putting fresh shares to raise about €100 million for the company. August 2024 saw Greencoat purchase a 50% stake from Statkraf in the 80.5 MW South Meath Solar Farm located in County Meath.
