Centrica announces sale of its remaining wind farm joint venture
Centrica has agreed to sell its 50% interest in the Lincs wind farm (“Lincs”) to the UK Green Investment Bank Financial Services managed entities and the UK Green Investment Bank plc. Siemens Project Ventures will also sell its 25% share with the remaining joint venture partner, DONG Energy, continuing to hold a 25% share in the asset. The transaction puts 50% of the enterprise value of Lincs at £487 million and after repayment of associated debt and other costs, Centrica’s net share of the proceeds will be approximately £220 million.
The transaction is expected to complete in February 2017 and Centrica will continue to provide operations and maintenance support to Lincs for a 12 month transitional period from the date of completion of the sale.
The sale completes Centrica’s exit from the ownership of wind power generation assets, although the Group will continue to be a major enabler of the development and operation of wind farms through entering into agreements to purchase renewable power.
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Notes to Editors:
- Lincs is a 270MW offshore wind farm located off the coast of North East Lincolnshire. It is owned by Lincs Wind Farm Limited, a joint venture between Centrica (50%), DONG Energy (25%) and Siemens Project Ventures (25%).
- Construction of the wind farm, located 5 miles off the coast of Skegness, started in 2010. The wind farm was officially opened on 1 August 2013.
- Centrica is an international energy and services company. Everything we do is focused on satisfying the changing needs of our customers.
- We supply energy and energy-related services to around 28 million customer accounts in the UK, Ireland and North America, through strong brands such as British Gas, Direct Energy and Bord Gáis Energy supported by around 12,000 engineers and technicians.
- We are also developing new and innovative products and services for customers globally. Our Connected Home business has developed products such as the Hive smart thermostat and through our Distributed Energy & Power business we offer integrated energy solutions for commercial and industrial customers, including flexible generation, energy management systems, and battery storage.
- We also have an Energy Marketing & Trading business which manages commodity risk and provides wholesale market access for the Group, as well as offering route to market services for third parties and undertaking optimisation and trading activity.
- Centrica continues to be active in gas and oil Exploration & Production, focusing on the UK, Netherlands and Norway and targeting production of between 40-50mmboe per annum. In Central Power Generation, we own five gas-fired power stations in the UK and a 20% interest in EDF Energy’s UK nuclear fleet.
- We also own the UK’s largest gas storage facility, Rough.