Hermes GPE Infrastructure has agreed to buy a majority interest in the Fallago wind farm, located in the Scottish Borders, around 35km south east of Edinburgh, from EDF Energy.
The Fallago wind farm is the UK’s fifth largest on-shore wind farm, and started generating electricity in January 2013, with full production from April 2013. EDF Energy will continue to own equity in the wind farm, and has a long-term power purchase agreement in place with the wind farm. Hermes GPE head of infrastructure, Paul Hofbauer, commented: “The renewable energy sector is a key area of interest for us, and Fallago Rig has very attractive investment characteristics. Our investment strategies focus on UK infrastructure assets that have a natural linkage to UK inflation, benefit from clear regulatory support mechanisms, possess long-term stable and predictable cash flows, and with solid yield characteristics.” He added that the local community would benefit from an annual contribution of £240,0000 from the wind farm and the Roxburghe estate. Hermes GPE purchased a 50% stake in another Scottish wind farm earlier in 2013.