China Three Gorges buys stake in Scottish windfarm

The Moray East wind farm off the Scottish coast now has all the financial arrangements in place, with the Chinese investing along with numerous Western companies

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Madrid headquartered EDP Renovaveis (EDPR) has sold a 10% stake in Moray Offshore Windfarm (East) Limited (MOWEL) to China Three Gorges (Europe) SA, a wholly owned subsidiary of China Three Gorges Corporation (CTG).

The 35 million pound deal was concluded on 28 December. Back in October 2015, EDPR and CTG signed an investment cooperation agreement for the Moray project, under which CTG (Europe) took an option to acquire a stake of up to 30% in the Scottish windfarm project.

A month later, in November, EDPR closed sale of 13.4 % stake to Diamond Generating Europe (DGE). With the completion of this latest transaction, the Moray Offshore Windfarm (East) Limited consortium comprises EDPR (33.3%), along with DGE (33.4%), ENGIE (23.3%) and CTG (10%). EDP Renovaveis is the renewable energy arm of Lisbon based EDP Group, Portugal's biggest utility.

MOWEL is expected to be completed by 2022. In September 2017, MOWEL was awarded a 15-year contract for difference (CfD) by the UK's Department for Business, Energy & Industrial Strategy (BEIS) for the delivery of 950 MW of offshore wind power.

On 6 December MOWEL, located 40 kilometres from the northeast coast of Scotland, announced that it had reached financial close – allowing it to begin its planned 2.6 billion pound investment in the project.

The financial close was announced at the Houses of Parliament in the UK, where Moray East board directors Dan Finch and Matteo Maino briefed the Rt Hon Claire Perry MP, Minister for Energy & Clean Growth about the project.

"Moray East marks a major milestone in the progress of the offshore wind industry - not only will it deliver plentiful, sustainable, renewable power, it will do so at a highly competitive price – to the economic advantage of both the household and the country," said Finch.

The Port of Cromarty Firth will be used as the project's intermediate port during construction. Fraserburgh will be the operations and maintenance base for the lifetime of the windfarm.

Date

9 Jan 2019

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