The Company will continue to invest in wind farm projects
predominantly with a capacity of over 10 MW. The substantial
majority of the portfolio will be operating UK wind farm
The Company will invest in both onshore and offshore wind farms
with the amount invested in offshore wind farms being capped at 40%
of the Gross Asset Value at acquisition.
The Company will seek to acquire 100%, majority or minority
interests in individual wind farms. These will usually be held
through Special Purpose Vehicles (SPVs) which hold underlying wind
farms. When investing in less than 100% of the equity share capital
of a wind farm SPV, the Company will secure its shareholder rights
through shareholders' agreements and other transaction
It is the Company's intention that when any new acquisition is
made, no wind farm project acquired will have an acquisition price
greater than 25% of the Gross Asset Value of the Group immediately
post-acquisition (and in no circumstances will a new acquisition
exceed a maximum limit of 30% of the Gross Asset Value of the Group
The Company intends to make investments in a wide geographical
spread of projects that are situated throughout the UK and its
offshore renewable energy zone.
The Company will retain exposure to UK power prices by entering
into PPAs that avoid fixing price of power sold over the long term.
The Company may enter into PPAs or hedging contracts that fix the
price of electricity sold for short periods of time.
The Company intends to make prudent use of portfolio level
leverage to finance the acquisition of investments and to preserve
capital on a real basis. The Company expects that the total of
short-term acquisition financing and long-term debt will be between
zero and 40% of Gross Asset Value of the Group at any time, with
average total debt being between 20% and 30% in the longer term.
There will be a third party borrowing limit of 40% of Gross Asset
Value calculated immediately after the borrowing has been drawn
The Company will not employ staff, and will engage experienced
third parties to operate the wind farms in which it owns