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United Utilities Group PLC on Tuesday said it has sold a series of renewable assets to SDCL Energy Efficiency Income Trust PLC.
The FTSE 100 listing has agreed to sell its non-appointed renewable energy business, United Utilities Renewable Energy, to SDCL for £100 million enterprise value.
United Utilities said it has developed a portfolio of solar, wind and hydro renewable assets since 2014 and noted the UURE unit comprises 69 megawatts of renewable generation assets across 70 sites.
Following the sale, these assets will continue to provide long-term green energy to its regulated water & wastewater business, United Utilities Water.
The utility said the sale allows it to recycle its capital employed in the UURE business back into the next phase of its path to net-zero.
In terms of total power generation, the portfolio is 90% comprised of solar assets, 9% wind and 1% hydro.
‘The portfolio benefits from long term contracted cashflows and, as the assets are operational, will be immediately cash yielding,’ FTSE 250-listed SDCL said.
‘The transaction fits SEEIT's investment policy as it increases the supply of renewable energy generated on-site and helps to reduce greenhouse gas emissions arising from the supply, distribution and consumption of energy. In particular, these assets supply clean energy to critical water infrastructure sites.’
SDCL said the deal has been funded using its existing resources. Completion is expected ‘in the coming months’.
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