Centrica and its 50% joint venture partner EIG Global Energy Partners (EIG) have agreed a joint sale of the 194 MW Lynn and Inner Dowsing offshore wind farms to a consortium comprising the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock.
The overall transaction also includes the sale of the 26 MW Glens of Foudland onshore wind farm, and is expected to bring Centrica and EIG around GBP 423 million. After repayment of debt associated with the farms and other costs, Centrica’s net share of the proceeds will be approximately GBP 115 million.
The sale is in line with Centrica’s strategy to dispose of its interests in wind power generation, while continuing to purchase wind power. The company will continue to purchase 100% of the power and 50% of the Renewable Obligation Certificates from the three wind farms under existing power purchase agreements until 2024.
The Lynn and Inner Dowsing offshore wind farms are located off the coast of North East Lincolnshire. Centrica started construction of the wind farms in 2006 and they were fully commissioned in March 2009.
The company will provide operations and maintenance support to the farms up to March 2017.