Lower-than-average wind resource in May and June hit Greencoat UK Wind’s portfolio generation in the first half of the year, putting it 6 per cent below budget at 951GW.
In its half-year financial results to 30 June 2018, the group said below budget portfolio generation and above budget power prices had contributed to cash generation in line with budget.
Greencoat currently has a around 3 per cent of the UK wind market. During the period it invested £277 million in two acquisitions, increasing net generating capacity to 785MW.
In March, the group acquired the 47.5MW Brockaghboy windfarm in Northern Ireland and in May, it exercised its option to increase its shareholding in the Clyde windfarms to 28.2 per cent.
In order to support the continuing growth of the company, in May it issued 102 million new shares at 117 pence per share, raising gross proceeds of £119 million.
There are currently 20GW of operating UK windfarms (13GW onshore plus 7GW offshore). Installed capacity is set to grow to 14GW onshore plus 12GW offshore by 2021.
In monetary terms, the secondary market for operating UK windfarms is approximately £50 billion, increasing to £75 billion by 2021.
Greencoat chairman Tim Ingram said electricity generation from wind is the most widely deployed renewable energy technology available in the UK and has matured from being a “somewhat unusual” form of generation into becoming one of the “key providers” of electricity.
“On average, over 15 per cent of the UK’s electricity demand is now being supplied by wind energy and by 2020, over 30 per cent of the UK’s electricity demand should be met from renewable sources – of which wind is the dominant component,” he said.
Greencoat is, therefore, investing in a mature and growing market, and the board believes there should continue to be “further opportunities for investments that are beneficial to shareholders”.
“Nonetheless,” Ingram added, “the company will continue to maintain a strictly disciplined approach to acquisitions, only investing when it is considered to be in the interests of shareholders to do so.”