Renewable energy assets are increasingly being built without any subsidies. The lack of certainty of cash flows which were previously underpinned by government subsidies brings more challenges and complexity for developers and investors alike.
JLL successfully completed the disposal of Creag Riabhach in Scotland – one of the UK’s first subsidy free wind farms, acting as financial advisor to the shareholders.
The shareholders of Creag Riabhach wanted to realise value from the project and to find a credible buyer who understood the challenges of subsidy-free renewables. As landowners to the project, it was important to them that the incoming investor had a long-term investment approach that aligned with local interests.
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Our understanding and experience of subsidy-free onshore wind was key for supporting the shareholders in securing investment for Creag Riabhach.
JLL ran a competitive transaction process and successfully achieved shareholders’ objectives concluding a sale to ERG SpA, an established European utility. Creag Riabhach will be constructed by ERG in the early 2020s and will be one of the first subsidy-free renewable projects in the UK. The wind farm will produce c.250GWh of clean energy per year, saving approximately 147,000 tonnes of CO2 annually. The overall investment in the project is expected to total £89m.