SEP expands its portfolio of wind assets in Wales

SEP expands its portfolio of wind assets in Wales

Scottish Equity Partners (SEP) is acquiring a 500kW wind turbine located in Merthyr Tydfil, Wales from the site’s original project developers.

SEP made the investment in Merthyr Renewable Energy Limited through its Environmental Capital Fund (ECF) which is targeted at infrastructure projects in the energy sector.

The acquisition of the turbine was completed on an all-equity basis without project finance debt, enabling a quick deal to be completed.

The financial terms of the acquisition have not been disclosed.

Peter Bachmann, director of SEP’s infrastructure team said: “Merthyr represents an attractive standalone investment for ECF and we are hopeful that the deal will also act as a catalyst for further acquisitions of EWT or other tier one, single wind turbines across the UK and Ireland.

“EWT has over 400 turbines installed in the UK and we are delighted to have added this high-quality direct drive turbine to our portfolio of wind assets.”

The tier one turbine, which is manufactured by Netherlands based Emergya Wind Technologies (EWT), has been operational since December 2013 and benefits from a 20-year index-linked, fixed price, feed-in tariff (of which 16 years remain), covering 100% of its revenue.

Operations and maintenance of the turbine will continue to be undertaken by EWT under a long-term full scope basis.

The Merthyr deal was led by Peter Bachmann, director and Verena Rathgeber, principal, both of SEP’s infrastructure team.

This is the third wind investment to be completed by SEP’s infrastructure team over the last six months.

The deal follows equity funding for the construction of the €8.7 million, 4.6MW Curraghderrig wind farm in the Republic of Ireland and the acquisition by ECF of the 9.2MW Port of Tilbury windfarm from SSE plc.

Dylan Jones, director who led the sales process on behalf of the original project owners said: “We are pleased to have been able to realise the value from our development efforts on this turbine which started in 2011.

“The infrastructure team at SEP have been great to work with and were professional and diligent throughout.”

Eco2, a specialist in the operational and financial management of wind assets across the UK, has been appointed as asset manager for the Merthyr turbine and will work alongside SEP’s in-house infrastructure asset management team.

Darren Williams, managing director of Eco2 added “We are delighted to be appointed by SEP and welcome the opportunity to increase our existing portfolio of assets under management, which includes wind and biomass projects. We are looking forward to building a successful working relationship with SEP”.

Scottish Equity Partners (SEP) is a UK late-stage venture and growth equity firm, specialising in investments in innovative, high growth technology companies.

With offices in Glasgow, Edinburgh and London, the firm manages primary and secondary funds backed by global financial institutions, pension funds and corporates.