EDF Energy and EDF Energies Nouvelles have sold a majority stake in their Fallago Rig onshore wind farm – which was officially opened last year by Scottish Energy Minister Fergus Ewing – to a City-based pension fund.
The 48 turbine, 144 MW wind farm – located on the Roxburghe Estate in the Scottish Borders near Westruther – was built by EDF Energy Renewables, which is a 50:50 Joint Venture between EDF Energy and EDF Energies Nouvelles.
The sale to Hermes GPE (manager of the Hermes GPE Infrastructure Fund and the discretionary infrastructure managed account programme for the BT Pension Scheme) will release equity from the project for EDF Energy Renewables to invest in the development of other renewable projects in the UK.
Hermes GPE, part of Hermes Fund Managers Limited, is a leading UK-based infrastructure fund manager that manages approximately £2.6bn on behalf of the BT Pension Scheme and other UK investors.
EDF Energy and EDF Energies Nouvelles will continue to own equity in the wind farm and EDF Energy Renewables will continue to manage the site on behalf of the new owners by providing operations, maintenance services and asset management. EDF Energy will continue to purchase electricity generated by the wind farm.
A fund set up for the benefit of the local community and visitors to the area remains unchanged. It will receive £240,000 each year from the Fallago Rig Wind Farm and the Roxburghe Estate for the life of the project. This is managed by the Tweed Forum.
Christian Egal, Chief Executive, EDF Energy Renewables said: “We’re pleased to have entered this agreement with Hermes GPE which will help us to free up capital which we will use to invest in other UK renewables projects.
“We have ambitious plans for the future to support the UK in reaching its renewable energy targets. This sale is consistent with that ambition and our ability to deliver new projects.”
In addition to 500MW of onshore and offshore projects already in service, EDF Energy Renewables has over 1000MW of onshore renewables projects in development together with a 1100MW offshore wind farm project currently under development, Navitus Bay, a 50-50 Joint Venture between Eneco Wind UK Ltd and EDF Energy