The United Kingdom’s wind sector witnessed significant M&A activity over the past 18 months – with 47 deals agreed involving UK wind assets for a combined $54 billion.
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The data illustrates that since the start of 2017 the UK was easily Europe’s most active market for wind power deals with Germany (24 deals) and France (20) the next most active.
“The UK is adding tremendous capacity offshore, with the number of turbines and their sheer size growing all the time,” said Paul Harris, chairman of UK Energy Strategies Ltd. (link to www.ukenergystrategies.com), a UK consultancy. “Wind, together with solar, are at the forefront of changing attitudes towards energy within the UK.”
Included in the UK’s total count is E.On’s acquisition of Germany’s Innogy SE – a $44.8 billion acquisition that is easily the largest deal including wind power assets worldwide since January 2017.
Innogy, whose current majority shareholder is RWE AG, has assets all over Europe. The vast majority of the company’s power generation capacity is in the wind sector (72% at year-end 2017). Its onshore and offshore farms in the UK and Germany make up the lion’s share of this capacity.
Aside from E.On, other recent UK wind deals with significant purchase prices saw Macquarie Group (via a consortium) acquire the Green Investment Bank Ltd. from the UK Government, while Norway’s Statkraft AS parted with stakes in two wind farms off the coast of Norfolk with a combined capacity of just under 250 MW, net to the stakes being sold.
Just this week, EDF announced the third largest UK wind deal since January 2017, a $942 million (£701 million) sale of a 49% stake in 24 wind farms.
Top 10 deals including UK wind power assets, Jan. 1, 2017 – Jul. 2, 2018
|Acquirer||Target Company||Description||Total Acquisition Cost (US$ billion) inc. debt assumption if applicable|
|E.ON||innogy SE||E.On acquires a 100% stake in innogy SE||44.80|
|Macquarie Group||UK Green Investment Bank Limited||A Macquarie-led consortium comprising Macquarie Group Limited, Macquarie European Infrastructure Fund 5 and Universities Superannuation Scheme acquires UK Green Investment Bank Limited from HM Government||2.98|
|Dalmore Capital Limited and Pensions Infrastructure Platform||EDF||EDF sells a 49% stake in 24 UK wind farms||0.94|
|Equitix Ltd.||Statkraft AS||Equitix acquires Statkraft’s 40% stake in the Sheringham Shoal offshore wind farm, which is located in the Greater Wash area off the coast of Norfolk, United Kingdom||0.75|
|China Resources (Holdings) Company Limited||Statkraft AS||A consortium led by China Resources (Holdings) Company Limited acquires Statkraft’s 30% stake in the Dudgeon offshore wind farm, built off the coast of Norfolk in the UK||0.75|
|UK Green Investment Bank plc||Centrica||Centrica sells its 50% interest in the 270 MW Lincolnshire wind farm to the UK Green Investment Bank Financial Services managed entities and the UK Green Investment Bank plc||0.61|
|PKA Ltd.||Ørsted||PKA Ltd. acquires a 25% ownership interest in the Walney offshore wind farm from Ørsted||0.44|
|PFA||Ørsted||PFA acquires a 25% ownership interest in the Walney offshore wind farm from Ørsted||0.44|
|UK Green Investment Bank plc||Siemens Project Ventures||Siemens Project Ventures sells its 25% interest in the 270 MW Lincolnshire wind farm to the UK Green Investment Bank Financial Services managed entities and the UK Green Investment Bank plc||0.31|
|Tenaga Nasional Berhad||GVO Wind Limited and Bluemerang Capital Limited||Tenaga Wind Ventures UK Ltd, a subsidiary of Tenaga Nasional Berhad acquires an 80% interest in two renewable energy companies registered in the UK; GVO Wind Limited and Bluemerang Capital Limited||0.24|