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Agreement with Gamesa to supply wind turbines for five UK onshore projects totalling 38MW
Renewable Energy Generation Limited, the AIM quoted UK focused multi-divisional renewables company, has entered into agreements with leading global wind turbine manufacturer Gamesa Eólica, S.L. to supply 19 wind turbines for five of REG’s consented UK onshore wind farm sites. These have a combined capacity of 38MW and once commissioned, will more than double REG’s total wind power capacity to 72.7MW.
The new projects, which are due to be delivered over the coming 18 months, are in line with the Company’s strategy to operate a diversified portfolio of 300MW of UK renewable energy projects, which includes wind, solar and biopower, within three years.
Under the terms of the Agreements, Gamesa will manufacture, erect and commission the turbines, and also provide long term service and maintenance of the machines. The sites benefiting from the agreements are French Farm (4MW), Rodbaston (4MW), Brackagh Quarry (6MW), Mynydd Portref (12MW) and Hallburn Farm (12MW) in the UK.
The total combined annual output of all five projects, once operational, will be 92,000MWh which will increase the company’s total annual wind power output to 183,000MWh. The capital cost of all five projects is expected to be in the region of £48 million.
REG’s CEO Andrew Whalley said, “REG is already a profitable, multi-divisional renewables company, and these five new projects will more than double our own-operated wind capacity in the UK to 72.7MW. Combined with our operational 26MW of bio-power projects, and the wind and solar assets we operate on behalf of third parties such as leading fund manager Blackrock, the total power generating capacity under our management will hit 150MW. At this point, we will be halfway towards achieving our stated objective to operate a portfolio of 300MW over the next three years across our wind, bio, solar and asset management divisions.
“As REG already has significant asset-backing with long term visible revenue streams, the Company is in an excellent position to capture the value created by our pipeline of projects for our existing shareholders. I look forward to providing further updates on our progress.”
