Hermes in for 144MW Fallago Rig
Investment group Hermes GPE will take a majority stake in the 144MW Fallago Rig wind farm in Scotland.
Funds managed by Hermes GPE Infrastructure agreed to buy the stake from French group EDF, which will retain an equity interest in the plant and continue to manage it via its EDF Energy Renewables unit.
Fallago Rig, located in the Scottish Borders region, uses 48 Vestas turbines and is the UK’s fifth-largest onshore wind farm, said Hermes GPE. It started full operations in April this year.
The plant has a long-term power purchase agreement in place with utility EDF Energy.
The value of the transaction was not disclosed.
Peter Hofbauer, head of infrastructure at Hermes GPE, said: “The renewable energy sector is a key area of interest for us, and Fallago Rig has very attractive investment characteristics.
“Our investment strategies focus on UK infrastructure assets that have a natural linkage to UK inflation, benefit from clear regulatory support mechanisms, with long-term stable and predictable cash flows, and solid yield characteristics.”
EDF Energy Nouvelles, the renewables unit of EDF, acquired Fallago Rig in February 2012 when it took over original developer North British Windpower.
The wind farm itself had to overcome several hurdles relating to military radar interference before it got the go ahead.