CLP
23 June 2005
Sale of The Cornwall Light & Power Co. Limited,
Owner of the Goonhilly Downs Wind Farm,
to Renewable Energy Generation Limited
NELLEN, with Ernst & Young LLP as corporate finance advisors, represented the sellers of The Cornwall Light & Power Co. Limited (“CLP”) on the sale of CLP to Renewable Energy Generation Ltd (“REG”), the AIM listed investor in renewable generation projects.
CLP owns a 5.6MW wind farm situated on Goonhilly Downs in Cornwall. The wind farm is an accredited generation station for the purposes of the Renewable Obligation Order 2002 and the Climate Change Levy (General) Regulations 2001.
The consideration for the purchase attributable to the wind farm amounted to £4.5m. In addition, and subject to the project meeting certain output criteria, a further payment of up to £500,000 will be payable to the sellers.
The wind farm was constructed in 1992 and consists of 14 Vestas Windane 400kW turbines. The annual output of the project has averaged over 11,000 MWh, equivalent to the annual domestic electricity consumption of more than 5,000 people. It is one of the better onshore wind sites in England, with a long and established history of power production. Based on the established output of the facility and advances in wind turbine technology made over the past decade, REG believes that improvements can be made to increase electricity production on the site.
Tessa Lyle, managing director and a founder shareholder of CLP said: “We are delighted to be selling to a company dedicated to the renewables industry with an established local connection”.