Centrica to sell Race Bank wind farm project to DONG Energy

Centrica plc has reached an agreement to sell its Race Bank offshore wind farm project to DONG Energy Power (UK) Limited for £50 million.

Centrica plc has reached an agreement to sell its Race Bank offshore wind farm project to DONG Energy Power (UK) Limited for £50 million.

With Centrica having taken the project through the planning and Front End Engineering Design phase, DONG Energy will now take forward the project’s development.

Race Bank is situated 27km off the Norfolk Coast and was consented in 2012. Once fully developed it could meet the equivalent annual electricity demand of more than 450,000 UK homes.

Mark Hanafin, Managing Director of Centrica Energy said: “This transaction marks the next step in the development of the Race Bank wind farm and we are pleased that the project will continue to progress towards a Final Investment Decision.”

Following completion of the transaction, Centrica will retain equity interests totalling 290MW in four operational wind farms in the UK.

Notes

  • In 2004 Centrica was awarded a 50-year lease from The Crown Estate to develop the Race Bank Wind farm. A consent application was submitted to DECC in January 2009 and consent was awarded in 2012. In November 2013 Race Bank was not included on the list of projects awarded the early enabling Contract for Difference.
  • Centrica’s equity interests in UK operational wind farms following the transaction are detailed below:
   

Total installed capacity (MW)

Centrica equity interest

Centrica equity capacity (MW)

Glens of Foudland

Onshore

26

50%

13

Barrow

Offshore

90

50%

45

Lynn and Inner Dowsing

Offshore

194

50%

97

Lincs

Offshore

270

50%

135

Total

      

290
  • Centrica retains a 50% interest in 4.2GW of potential capacity in Celtic Array, the Round 3 Irish Sea Zone.