Background

The UK set an ambitious goal to double its renewable energy capacity by 2030 and it is thought that this will be spurred mostly by wind power investments. The cost of new offshore wind has fallen by 50%* since 2015 and it is now one of the lowest cost options for new power in the UK – cheaper than new gas and nuclear power. However, significant investment is required to transform the UK into a world leader in this space.

Solution

As an anchor investor, we provided c.£370 million in long-term financing to support Global Infrastructure Partners’ 50% acquisition of the Hornsea One offshore wind farm. The transaction followed a number of significant investments made in the UK renewables sector, including c.£320 million of debt financing for the Walney Extension, located off the North-West coast of England.

Further investments

Hornsea One comprises 174 market leading turbines provided by Siemens with an export capacity of 1,200 megawatts, providing enough energy to power well over one million UK homes. The project’s main construction phase created 2,000 full time jobs throughout the UK and hundreds of permanent jobs locally.

*Source: renewableUK

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The Real Assets Solutions team operates right across the entire LGIM Real Assets platform.  With more than 100 years of combined industry experience, our 10-strong team draws on the expertise of former investors, consultants and product specialists.