In a significant move within the renewable energy sector, OnPath Energy has finalized the sale of its 67.2-MW Kype Muir Extension wind farm in Scotland to funds managed by British investment manager Schroders Greencoat LLP. This transaction marks the complete transfer of ownership, following Schroders Greencoat’s acquisition of a 49.9% stake nearly a year ago.
Details of the Transaction
OnPath Energy announced the completion of the sale on Friday, revealing plans to reinvest the proceeds into new high-quality renewable energy infrastructure projects. The Kype Muir Extension, located near Strathaven in South Lanarkshire, consists of 15 turbines and was officially inaugurated in September 2024.
- Key Transaction Facts:
- Total capacity: 67.2 MW
- Number of turbines: 15
- Initial stake acquired by Schroders Greencoat: 49.9%
- Completion of sale: October 2024
The Kype Muir Extension was developed adjacent to the existing 26-turbine Kype Muir wind farm, which OnPath commissioned in 2019. The first turbine of the extension was connected to the grid in 2022, showcasing a commitment to expanding renewable energy capacity in the region.
Operational and Community Impact
The Kype Muir Extension is notable for being built without state subsidies, operating under a 15-year fixed power price agreement (PPA). This arrangement ensures a stable revenue stream while contributing significantly to the local energy supply.
- Environmental Benefits:
- The wind farm’s output is sufficient to power approximately 53,700 homes annually.
- A commitment to allocate GBP 10 million (USD 13 million/EUR 12 million) of the wind farm’s revenues for local community and environmental projects will be upheld by Schroders Greencoat.
This commitment underscores the importance of community engagement and environmental stewardship in renewable energy projects, ensuring that local stakeholders benefit from the wind farm’s operations.
Future Prospects
With the sale of the Kype Muir Extension, OnPath Energy is poised to focus on developing new renewable energy initiatives, further contributing to the transition towards sustainable energy sources. The partnership with Schroders Greencoat is expected to enhance the operational efficiency and community impact of the Kype Muir Extension, reinforcing the role of wind energy in Scotland’s energy landscape.
