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SEP’s Environmental Capital Fund expands its portfolio of wind assets

Scottish Equity Partners (SEP) has funded the acquisition of a 500kW wind turbine located in Merthyr Tydfil, Wales.

SEP made the investment in Merthyr Renewable Energy Limited through its Environmental Capital Fund (ECF). Financial terms of the acquisition, which completed in late December, were not disclosed.

The tier one turbine, manufactured by Netherlands based Emergya Wind Technologies (EWT), has been operational since December 2013 and benefits from a 20-year index linked, fixed price, feed in tariff (of which 16 years remain) covering 100% of its revenue. The deal was led by Peter Bachmann, Director and Verena Rathgeber, Principal, both of SEP’s infrastructure team.

This transaction is the third wind investment to be completed by SEP’s infrastructure team over the last six months and follows equity funding for the construction of the €8.7 million, 4.6MW Curraghderrig wind farm in the Republic of Ireland and the acquisition by ECF of the 9.2MW Port of Tilbury windfarm from SSE plc.

Peter Bachmann, Director of SEP’s infrastructure team said: “Merthyr represents an attractive standalone investment for ECF and we are hopeful that the deal will also act as a catalyst for further acquisitions of EWT or other tier one, single wind turbines across the UK and Ireland. EWT has over 400 turbines installed in the UK and we are delighted to have added this high quality direct drive turbine to our portfolio of wind assets.”