Greencoat Renewables has agreed to sell a 116MW portfolio of Irish onshore wind assets to HitecVision for €156 million.
The disposed portfolio comprises 100% of five assets (65.7MW) and a 50% stake in one of the larger assets in Greencoat Renewables’ portfolio.
Schroders Greencoat LLP partner Paul O’Donnell said: “This transaction reflects the disciplined execution of our capital allocation strategy, unlocking value from our portfolio and further enhancing our financial strength.
“In the last six months, we have successfully executed disposals that total more than €200 million of gross proceeds, delivering value above our original investment.
“We continue to see significant opportunities in the growing European renewable market for Greencoat Renewables to create value for its shareholders.
“As well as providing future balance sheet flexibility, this latest transaction underpins the opportunity to create increasing value from older assets including re-contracting PPAs and options for hybridisation and repowering.”
The transaction has led HitecVision and energy transition investment firm Reinova Partners to launch a new Irish renewable energy platform company.
Lirion Power will be a joint venture between HitecVision (70%) and Reinova Partners (30%), and will be seeded by the portfolio of wind farms acquired from Greencoat Renewables.
Lirion Power aims to grow through acquisitions of mid-life operating onshore wind assets – unlocking additional value through co-located new build, re-contracting and repowering – as well as greenfield development targeting mid-term growth.
The initial portfolio comprises the six fully operational wind farms across the Republic of Ireland, including a 50% operational stake in a flagship 100MW wind farm, one of the largest privately held onshore wind assets in the country.
The portfolio benefits from firm grid connections and existing offtake agreements.
It also presents opportunities to combine re-contracting with potential co-location of new solar and battery energy storage (BESS), as well as long-term repowering.
“This launch represents a significant milestone in our strategy of building profitable growth-focused companies in support of the European energy transition,” said Erlend Basmo Ellingsen, chief executive and managing partner at HitecVision.
“Ireland combines world-class wind resources, rising electrification and clearly defined growth targets for renewable energy.
“With Lirion Power we can apply our proven value creation model to scale a platform with a clear focus on operational value enhancement and long-term growth.”