UK: Centrica in Discussion with Financial Partner for Race Bank OWF

Centrica, in its preliminary results for 2012 which were published today, has disclosed the information that the company is in discussions with a financial partner and the UK Government concerning the economic framework for the Race Bank offshore wind farm project.

The company was granted planning consent for the 580MW Race Bank offshore wind farm in 2012, for which it is willing to commit GBP 200 million of its own capital.

Sam Laidlaw, Centrica’s Chief Executive, said in the accompanying statement: “Our focus in UK power generation will be to preserve our existing power hedge, investing where we have a competitive advantage and see attractive returns. We retain a number of offshore wind opportunities, at Race Bank and in the Irish Sea.

“However we will only invest for value and will seek to reduce our equity ownership through partnering where appropriate. We also retain options to build new CCGTs. However spark spreads remain at historically low levels and much will depend on the final outcome of Electricity Market Reform and the implementation of a capacity market in the UK.”

Last year, Centrica also achieved first power from its 270MW Lincs offshore wind farm, which will be fully operational by the second half of 2013. It will be able to meet the annual demand of more than 200,000 households.

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Offshore WIND Staff, February 27, 2013; Image: Centrica