Norwegian government-owned energy company Statkraft has acquired over 1.5GW of wind farms under development in Ireland and the UK from Element Power Group.
The onshore wind development pipeline acquired by Statkraft includes 1.3GW in Ireland and 250MW in the UK.
As part of the transaction, Statkraft has acquired Element Power Ireland and three UK project companies. Financial details related to the transaction have not been disclosed.
The transaction is expected to fit into its current growth strategy, under which Statkraft aims to increase its portfolio of wind power assets to 6GW by 2025.
Being one of the largest renewable energy producers in Europe, the company aims to grow further within hydropower, wind and solar power. It also intends to grow its market operations in Europe, South-America and India.
Statkraft CEO Christian Rynning-Tønnesen said: “This acquisition fits perfectly with our onshore wind power strategy. A very competent organisation based in Ireland and in the UK will strengthen Statkraft’s capabilities in project development, construction and commercial management in the UK and Ireland, as well as across markets.”
The transaction also includes acquisition of 100% of shares in Element Power’s Irish and UK subsidiaries from Element Power’s owner Hudson Clean Energy Partners. It excludes Greenlink Interconnector, a special purpose vehicle which is responsible for the 580MW transmission link between the UK and Ireland.
Element Power CEO Mike O’Neill said: “We are delighted to complete the sale of our renewable energy and related activities in Ireland and the UK, and especially so to a company of Statkraft’s standing and ambitions for growth, who will build on our successful track record of project delivery. They are inheriting an extremely high calibre team and a substantial portfolio of projects that will enable them to take a leading role in the market.
“We wish them every success, whilst we look forward to continuing the development of our Greenlink interconnector project that will link these two important energy markets and help facilitate their continued decarbonisation.”
In late September, the company announced that it will invest NOK10bn ($1.22bn) in renewable energy between 2019 and 2025. As part of this announcement, the company stated that it plans to acquire 6GW of wind and 2GW of solar by 2025.