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NBIM's Entry into the Project, at $5.75mn/MW, is Significantly Lower than Deal Multiples for Wind Farms with Comparable Power Tariffs and Remaining Contract Periods
📈 Norges Bank Investment Management (NBIM) acquired a 37.5% stake in the 573 MW Race Bank offshore wind farm from Macquarie (25%) and Spring Infrastructure Capital (12.5%). The Transaction EV comprises an equity value of $420mn and $820mn of assumed debt, for NBIM's share. The project, located off the UK's east Coast in the North Sea, receives 1.8 ROCs/MWh with 13.5 years remaining on the contract period and has PPAs with Nestle and the Northumbrian Water Group
💡Enerdatics analysis reveals that Macquarie's May'24 divestment of a 10% stake in the Iberdrola-operated East Anglia ONE (EAO), also located in the North Sea, serves as the most optimal comparable. The deal, valued at $7.5mn/MW, occurred at a significant premium compared to Macquarie's most recent sale, despite EAO's lower remaining contracted life of 11 years under the UK's contracts-for-difference (CfD) regime
📊 Enerdatics postulates that Macquarie's motivation to divest its 25% stake at the agreed valuation is driven by accelerated portfolio rationalization efforts, highlighted by Macquarie Asset Management CEO in May'24. The firm also announced a shift in its green investment strategy, with the aim of ramping up asset realizations and increasing focus on emerging opportunities including hydrogen, carbon capture, and energy storage
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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