China Three Gorges (CTG) has signed an agreement with EDP Renováveis (EDPR) subsidiary EDPR UK to acquire 30% stake in the up to 1.1GW Moray offshore wind project, located in the North Sea off the coast of Scotland.
As per the deal, CTG will participate in the investment, development and operation of the wind project, along with EDPR and other investors.
It will acquire 30% of the equity and shareholder loans directly or indirectly owned by EDPR in the Moray Offshore Renewable (MORL)
MORL, which is a joint venture between EDPR UK and Repsol Nuevas Energias UK, plans to install 189 to 339 turbines over a 295km² area, in order to meet the power needs of up to one million homes.
EDPR said that the deal furthers the strategic partnership between EDPR’s principal shareholder Energias de Portugal (EDP) and CTG.
CTG plans to invest in the project in two stages. The firm will initially invest in 10%-20% when the UK government announces a new Contract for Difference (CfD) auction allocation round.
The company will make an additional investment of up to 10% once the project secures a CfD.
The project, which secured the Scottish Government consent in March 2014, is planned to be divided into a number of phases to allow “a proper bidding strategy” for CfDs.
This deal with CTG is subject to regulatory and third party approvals and other precedent conditions.