The deal marks the completion of the second phase of the £400 million ($688 million) Zephyr investment fund set up in 2004.
The four projects sold to BWL, of which RWE is a part owner, have a total capacity of 140 MW and include the UK’s first major offshore wind farm, the 60 MW North Hoyle completed in April 2004. The purchase of North Hoyle is thought to represent the first ‘non-recourse’ project financing of an offshore wind farm in the world. The three onshore wind farms making up the balance of the package are: Bears Down Wind Farm (a 10 MW project in Cornwall); Windy Standard Wind Farm (a 22 MW project in Dumfries and Galloway), and Causeymire Wind Farm (a 48 MW project in Caithness).
RWE npower will retain a 1/3 stake in these projects through its investment in the Zephyr fund. In addition, RWE npower will also continue to operate and maintain the projects through npower renewables and continue to purchase the power, Levy Exemption Certificates and Renewable Obligation Certificates from North Hoyle and Causeymire under long term purchase contracts.
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