GE Energy Financial Services, a unit of General Electric Company GE which funds energy infrastructure projects, expanded its international wind portfolio with a definitive agreement to buy the 16-megawatt Langhope Rig wind farm from SSE plc.
The Langhope Rig wind farm, nearing completion, is situated close to Hawick in the Scottish Borders. The farm is powered by 10 GE 1.6 MW wind turbines, which GE Energy UK will service under a long-term operations and maintenance agreement. Also, GE Energy Financial Services will take over ownership and operation of the wind farm when its construction is completed later this year.
The Langhope Rig acquisition is in sync with GE Energy Financial Services’ strategy of investing in high-quality energy assets with veteran partners, and is supported by the UK’s stable wind regime. The deal integrates GE Energy Financial Services’ prowess as a dominant player in structured finance with its established proficiency in energy technology.
SSE plc (formerly Scottish and Southern Energy) is one of the biggest generators and suppliers of energy in the UK, and the sale is part of the ongoing restructuring program in its wind farm portfolio. The company is focusing on projects that optimize efficient allocation of resources and economies of scale, as its moves toward the next phase of its renewable energy development pipeline.
The project includes a £5,000 per MW community investment fund that SSE committed for the benefit of communities surrounding the wind farm. GE Energy Financial Services assured that it will honour the commitment.
Renewable power is a core focus area for GE Energy Financial Services. The unit is one of the largest investors in wind power, boasting a project portfolio that spans 9 countries with a capacity of over 14 gigawatts in operation or under construction.
In addition to expanding its global presence, the acquisition demonstrates GE’s commitment toward its plan to invest $1 billion annually in renewable energy projects worldwide.
GE presently carries a Zacks Rank #3 (Hold). Better-ranked stocks include Compass Diversified Holdings CODI, Citigroup Inc. C and Valero Energy Corporation VLO, each holding a Zacks Rank #2 (Buy).
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