The Courier & Advertiser (Angus and Dundee)
Confidence in future of wind power
The windfarms of Greencoat UK Wind generated less electricity last year because it was less windy.
Chairman Tim Ingram said the firm, with a portfolio of 19 windfarms in the UK, performed well.
It raised almost £250 million in a share issue and declared in its annual report: “Wind continues to remain the most mature and widely deployed renewable technology available in the UK. The company is in a good position to benefit as electricity production from wind becomes an increasingly important part of the UK’s generation mix.”
Greencoat’s windfarms include the 36MW Braes of Doune near Stirling.
It also bought a 28.2% interest in SSE’s Clyde 350MW windfarm in South Lanarkshire for £196m during last year.
The infrastructure investment firm generated 978.1 GWh of electricity during the year, 6% below budget, reflecting average wind speed across the UK 6% below the long-term mean.
One of its guiding principles is its belief that wind is the most mature and largest scale renewable technology.
The first three quarters of the year saw lower power prices but they increased in the fourth quarter.
Net cash generated by the group and windfarms was £49.0m and dividend cover was 1.4x, showing the resilience of the business model.
Mr Ingram said: “We are pleased to report the continued good performance of our portfolio and demonstrate the robustness of the company’s business model in a dynamic environment.
“We have delivered a total shareholder return of 17.4% and NAV (Net Asset Value) growth (adjusted for dividends) of 4.1 pence in 2016 and again increased our target dividend by RPI (Retail Price Index) to 6.49p per share for 2017.”
Greencoat bought windfarms in Scotland and in Northern Ireland during the year for a total of £247m, increasing its net generating capacity to 420MW.