ESB and Coillte joint venture FuturEnergy Ireland has entered into an agreement with Greencoat Renewables in respect of its 1GW-plus pipeline of onshore wind projects.
More than 500MW is anticipated to be sold to Greencoat by 2030 through the strategic framework structure.
The agreement will operate in respect of FuturEnergy Ireland’s portfolio of onshore wind projects in Ireland.
The framework enables Greencoat Renewables to seek to acquire project stakes in operating assets under a forward sale structure, subject to receipt of relevant shareholder consents, adherence to an agreed commercial structure and achieving market value.
The acquisition of each project stake would complete upon each project reaching commercial operation.
Through this framework, FuturEnergy Ireland can assist Coillte, one of its two shareholders, in the execution of its strategy to dispose of wind farm assets once they become operational.
Between now and 2030, Greencoat expects to invest more than €1bn in acquiring projects successfully delivered by FuturEnergy Ireland.
The assets under the framework shall be supported through the Irish Government’s Renewable Electricity Support Scheme (RESS), as well as through Ireland’s corporate PPA market.
FuturEnergy Ireland was supported throughout the process to select Greencoat Renewables by its advisory team, which comprised RBC Capital Markets (financial advisor), Eversheds Sutherland (legal counsel) and KPMG (tax advisor).
Peter Lynch, CEO, FuturEnergy Ireland said: “We are very much looking forward to establishing a new strategic relationship with Greencoat Renewables through this innovative framework structure.
“The framework will build upon a well-established history of successful partnerships in our business and further demonstrates Greencoat’s commitment to Ireland and its renewables market.
“This agreement will help to accelerate the commercialisation of projects and leverage its many benefits and efficiencies to enable us to deliver a large pipeline of renewable energy projects in support of national and EU climate goals.”