Gaelectric sells wind farms to China General Nuclear Power

Renewable energy specialist Gaelectric is selling 14 Irish wind farms worth an estimated €400 million to China General Nuclear Power's European energy arm (CGNEE).

Gaelectric said on Wednesday it had agreed to sell 14 wind farms with a capacity of 230 mega watts (MW) – enough electricity to power about 120,000 homes – to CGNEE.

The businesses that the Irish company is selling are made up of 10 wind farms with the capacity to generate 184MW in total, and another four with the potential produce 46MW, which will be up and running in the middle of next year.

Neither side revealed the purchase price, but industry sources estimate the value of the assets at €400 million-plus.

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Gaelectric chief executive Barry Gavin said the company intended using the proceeds to pay off debts and support other renewable energy projects.

Accounts

In its most recent accounts the group had €200 million in debt on March 31st, 2015, all of it borrowed to help pay for the development of its wind and solar farms and its energy-storage facilities.

All 14 wind farms are in Ireland, with seven on each side of the Border. Gaelectric either built the farms itself or bought them, and will continue to manage the facilities after their sale to CGN.

"Our contract with CGNEE for trading and asset management will form the basis of a continuing relationship with a very significant new player in the Irish, European and international energy market," Mr Gavin said.

CGNEE chief executive Dr Wei Lu said the group looked forward to working with the Irish company in the future.