Octopus Renewables buys Irish solar portfolio in deal worth up to €145m

Company acquiring five sites near Dublin from Norwegian energy giant Statkraft

ORIT has secured a fully amortising debt facility of up to €88 million from AIB and La Banque Postale to part finance the acquisition of the operational sites. Photograph: iStock

ORIT has secured a fully amortising debt facility of up to €88 million from AIB and La Banque Postale to part finance the acquisition of the operational sites. Photograph: iStock

 

Octopus Renewables Infrastructure Trust (ORIT) has made its first solar acquisition in the Republic with a deal to acquire a portfolio from Statkraft in a transaction valued at up to €145 million.

The company is buying five solar photovoltaics (PV) sites located near Dublin, which are expected to have capacity of 250megawatts (MW) once operational.

Total consideration for the acquisition is expected to be between about €138 million and €145 million which will be payable on completion.

ORIT has secured a fully amortising debt facility of up to €88 million from AIB and La Banque Postale to part finance the acquisition of the operational sites, it said.

Completion of the acquisition is conditional upon four of the sites becoming fully operational, which is expected to occur in the second half of 2022. These sites benefit from a contract for difference awarded as part of the Irish RESS-1 auction, providing fixed-price revenues until 2037.

The fifth site, which is expected to have an installed capacity of up to 50MW, will be acquired on or after completion as a construction-ready project, conditional on the site securing a RESS contract for difference in a future Irish auction.

“Development of solar assets has picked up pace recently in Ireland, and the construction of these projects in Ireland will have a positive contribution to decreasing carbon emissions and helping Ireland on its path for a more renewable future,” said Chris Gaydon, investment director at Octopus Renewables.

ORIT, which is listed in London, earlier this month raised £150 million through an oversubscribed share placing to support future investments.

It’s parent Octopus Resources is one of the largest owners and managers of renewable energy assets in Europe. It manages more than £3.4 billion of assets on behalf of investors with 2.8GW of total portfolio capacity.

Norwegian State-owned Statkraft earlier this month began building the Republic’s biggest solar-powered electricity generator in Co Meath.