Octopus Renewables acquires £50m onshore wind farm
Posted on October 29, 2020 by Alistair Hardaker
Octopus Renewables Infrastructure Trust, part of the Octopus Group which includes Octopus Energy and Octopus Wealth, has acquired 100% of the Cerisou wind farm, a construction-ready onshore wind project in the Vienne department of France.
The project has been acquired from developer RES, for a total cash consideration of €56m (c. £50m), including future construction payments.
Project construction will be carried out under a full-wrap contract by RES and is expected to be completed in the third quarter of 2022.
Once operational, the wind farm will have 24MW of total capacity, enough to power 48,000 homes for an hour according to Ofgem calculations.
The wind farm will comprise of 8 turbines and will benefit from fixed, index-linked revenues for twenty years via the premium tariff under the demande de contrat de complément de remuneration (“DCCR”) 2017 Contract for Difference regime.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: “I am delighted to announce this fifth acquisition today, which signifies a milestone for ORIT with the full commitment of the IPO proceeds. Our manager has worked hard to identify compelling investment opportunities for the Trust and we have built a well-diversified portfolio for the Company.”
Chris Gaydon, Investment Director at Octopus Renewables, added: “We are pleased to announce the acquisition of the Cerisou wind farm, which marks ORIT’s first wind farm in France, leverages Octopus Renewables’ experience in this market and meets our portfolio diversification goals.
“The French market is attractive to ORIT as long-term subsidies and political support continue to provide investment opportunities in new build renewable energy assets.”