Wind up

In the UK, Centrica plc recently acquired two adjacent offshore windfarm sites from AMEC Investment Ltd and Offshore Wind Power, a joint venture between Renewable Energy Systems (RES) and British Energy Renewables, for an initial cash consideration of £7 million, plus an additional £2 million, which is conditional on the placing of construction contracts.

Both sites, lying about 5km off the south Lincolnshire coast, have planning consent to develop 90MW windfarms, comprising 30 turbines each. Under separate Development Services Agreements, Centrica will retain the services of AMEC and RES to develop a total of 180MW, with the entire output taken by Centrica’s subsidiary, British Gas.

The capital investment cost, assuming the project progresses to completion,together with the acquisition consideration, is currently estimated at approximately £190 million, of which £20 million will be funded by government capital grants.