Greencoat Renewables is to acquire four onshore wind farms in France from Swiss energy giant Axpo.
The 65 megawatt (MW) portfolio will bring the Irish-listed firm’s total installed capacity to 1,079 MW, including its recent acquisition of 50pc of Germany’s Borkum Riffgrund 1 offshore project.
France will represent 12pc of the Greencoat Renewables portfolio after the sale closes.
All four of the new wind farms have been completed and benefit from long-term contracts of up to 20 years with the French government.
They include the 16 MW, eight-turbine Arcy-Précy farm in Burgundy, the four-turbine, 9.4 MW Butte de Menonville farm in the Centre Val-de-Loire region, and the 20.3 MW Genonville farm and the 19.8 MW Grande Pièce farm, both of which have six turbines.
Three of the farms have fixed-price contracts until 2041 or 2042, with the Grand Pièce contract running until 2032.
The transaction is the Company's second portfolio acquisition in France and follows Greencoat’s expansion into Spain, Finland, Germany, and Sweden.
The transaction is expected to close in the second quarter of this year.
“This transaction represents a further milestone in Greencoat Renewables' strategy to increase our position in the French renewables market, which provides an opportunity to secure long-term contracted renewable energy assets,” said investment manager Bertrand Gautier.
“We look forward to working further with Axpo, a large owner of renewable assets in Europe.”
Last year Greencoat generated net cash of €70.5m, up from €66.4m in 2020.
During the year the company’s portfolio increased to 25 assets, with a net generating capacity of 800 MW.
Greencoat said its portfolio’s exposure to higher market power prices and strong inflation protection helped to deliver net asset value growth of four cents in 2021.
The group’s portfolio generated 1,522 gigawatt hours (GWh) of electricity in the period, compared to 1,404GWh in 2020.
The company, which produced renewable energy for 339,000 homes, declared dividend of 6.06 cent for the period, with a target of 6.18 cent per share for 2022.
Greencoat had group debt of €631.1m at the end of last year.
Earlier this year the company purchased Tullahennel wind farm in county Kerry from funds managed by affiliates of Apollo Global Management.
Greencoat Renewables is managed by Greencoat Capital, a specialist manager dedicated to the renewable energy infrastructure sector.