FuturEnergy Ireland, a Coillte and ESB joint venture company, announces it has entered into a long-term strategic framework agreement with Greencoat Renewables PLC in respect of its 1GW-plus pipeline of onshore wind projects. More than 500 MW is anticipated to be sold to Greencoat by 2030 through the framework structure.
The agreement will operate in respect of FuturEnergy Ireland’s portfolio of onshore wind projects in Ireland. This market-leading agreement establishes a framework whereby Greencoat Renewables can seek to acquire project stakes in operating assets under a forward sale structure, subject to receipt of relevant shareholder consents, ad-herence to an agreed commercial structure and achieving market value. The acquisition of each project stake would complete upon each project reaching commercial operation. Through this framework, FuturEnergy Ireland can assist Coillte, one of its two shareholders, in the execution of its strategy to dispose of wind farm assets once they become operational.
This new framework combines FuturEnergy Ireland’s unique pipeline of projects and market-leading expertise in renewable energy project development and delivery with Greencoat’s unmatched commitment to investing in Irish renewables. Between now and 2030, Greencoat expects to invest more than €1 billion in acquiring projects success-fully delivered by FuturEnergy Ireland.
The assets under the framework shall be supported through the Irish Government’s Renewable Electricity Sup-port Scheme (RESS), as well as through Ireland’s well-established corporate power purchase agreement (PPA) mar-ket. FuturEnergy Ireland was supported throughout the process to select Greencoat Renewables by its advisory team, which comprised RBC Capital Markets (financial advisor), Eversheds Sutherland (legal counsel) and KPMG (tax advisor).
“We are very much looking forward to establishing a new strategic relationship with Greencoat Renewables through this innovative framework structure. The framework will build upon a well-established history of successful partner-ships in our business and further demonstrates Greencoat’s commitment to Ireland and its renewables market,” said Peter Lynch, CEO, FuturEnergy Ireland. “This agreement will help to accelerate the commercialisation of projects and leverage its many benefits and efficiencies to enable us to deliver a large pipeline of renewable energy projects in sup-port of national and EU climate goals. This in turn will result in the faster delivery of our renewable energy projects that are urgently needed to reduce carbon emissions.” “We are very excited to partner with FuturEnergy Ireland and their development team on this long-term Strategic Framework Agreement, which will make a significant contribution to Ireland’s 2030 climate targets and broader net zero ambitions,” added Paul O’Donnell, Investment Manager, Greencoat Renewables PLC. “The framework will pro-vide access to long-term contracted cashflows and forms an integral part of our strategy as we re-invest organic cash to secure attractive new investments. As the largest owner of onshore assets in Ireland, representing an investment of over €1.4 billion over the last 6 years, we are well-positioned to deliver these critical projects.”