Brookfield Renewable Energy Partners has today announced an agreement to acquire the wind portfolio of Bord Gáis Energy (BGE) for a total enterprise value of up to approximately €700 million, subject to customary closing adjustments.
The transaction with Brookfield Renewable is being completed as a sale by Bord Gáis Éireann of all of its energy business to a consortium that also includes Centrica plc and iCON Infrastructure, who will acquire the non-wind assets of BGE. The purchase price is subject to customary closing adjustments and represents, net of assumed long-term non-recourse debt and certain deferred contingent consideration, a net purchase price of approximately €495 million. Brookfield Renewable will fund the transaction with its institutional partners and maintain an economic interest in the portfolio of approximately 40%.
“The Bord Gáis portfolio represents an ideal entry point into the European market, bringing with it high quality renewable assets and an experienced team of approximately 70 professionals with operating, development, technical, commercial, and finance expertise,” said Richard Legault, president and CEO of Brookfield Renewable. “Moreover, this first acquisition outside the Americas provides us with a strong foundation to build a scalable renewable energy business in Europe.”
The BGE wind portfolio comprises 321 MW of operating wind capacity across 17 wind projects in eight counties in Ireland and Northern Ireland. The portfolio represents approximately 15% of the installed wind capacity in Ireland, and includes some of the strongest onshore wind resources in Europe. Approximately 90% of the output is contracted on a long-term basis pursuant to established government-backed tariffs. The contracts feature fixed minimum prices with annual inflation indexation and the portfolio can benefit from rising market prices over time.
Brookfield Renewable said that the combination of strong wind resources in Ireland and a power market that otherwise relies on natural gas-fired generation allows windpower to be an attractive, cost-effective source of long-term electricity supply. “The portfolio is well positioned for future growth with an additional 125 MW currently in construction and an approximate 300 MW wind development pipeline,” the company said in a statement.