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Greencoat UK Wind PLC
Annual Report
For the year ended 31 December 2023
G R E E N C O A T
U K W I N D
Summary 01
Chairman’s Statement 02
Investment Manager’s Report 05
Strategic Report 19
Board of Directors 38
Report of the Directors 42
Directors’ Remuneration Report 45
Statement of Directors’ Responsibilities 49
Corporate Governance Report 50
Audit Committee Report 56
Independent Auditor’s Report 60
Financial Statements 68
Notes to the Financial Statements 74
Company Information 103
Supplementary Information 104
EU SFDR Disclosures 105
Defined Terms 124
Alternative Performance Measures 127
Cautionary Statement 129
Contents
G R E E N C O A T
U K W I N D
All capitalised terms are defined in the list of defined terms on pages 124 to 126 unless separately defined.
Summary
Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The
Company’s aim is to provide investors with an annual dividend that increases in line with RPI inflation while
preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of
excess cash flow.
The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms,
so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of
greenhouse gas emissions.
Highlights
The Group’s investments generated 4,743GWh of renewable electricity.
Net cash generation (Group and wind farm SPVs) was £405.5 million.
Investment in Dalquhandy, London Array, South Kyle and Kype Muir Extension wind farms increased the
portfolio to 49 operating wind farm investments and net generating capacity to 2,007MW as at
31 December 2023.
The target dividend for the year was 8.76 pence per share. With the increased dividend for the final quarter
of 3.43 pence per share, declared dividends for 2023 were 10 pence per share.
The target dividend with respect to 2024 is also 10 pence per share, an increase of 14.2 per cent above the
target dividend for 2023, significantly above December’s RPI of 5.2 per cent.
Aggregate Group Debt was £2,375 million as at 31 December 2023, equivalent to 38 per cent of GAV.
Key Metrics
As at As at
31 December 2023 31 December 2022
Market capitalisation £3,502.9 million £3,523.5 million
Share price 151.5 pence 152.0 pence
Dividends with respect to the year £231.4 million £178.9 million
Dividends with respect to the year per share 10 pence 7.72 pence
GAV* £6,169.0 million £5,652.7 million
NAV* £3,794.0 million £3,873.2 million
NAV per share* 164.1 pence 167.1 pence
TSR* 5.4 per cent 13.5 per cent
CO
2
emissions avoided per annum* 2.5 million tonnes 2.0 million tonnes
Homes powered per annum* 2.3 million homes 1.8 million homes
Funds invested in community projects in the year £4.4 million £4.0 million
* Alternative Performance Measures as defined on page 127.
Defining Characteristics
Greencoat UK Wind PLC was designed for investors from first principles to be simple, transparent and low risk.
The Group is invested solely in UK wind farms.
Wind is the most mature and largest scale renewable technology.
The UK has a long established regulatory regime, high wind resource and £100 billion worth of wind farms
in operation.
The Group is wholly independent and thus avoids conflicts of interests in its investment decisions.
The independent Board is actively involved in key investment decisions and in monitoring the efficient
operation of the assets, and works in conjunction with the most experienced investment management team
in the sector.
Low gearing is important to ensure a high level of cash flow stability and higher tolerance to downside
sensitivities.
The Group invests in sterling assets and thus does not incur material currency risk.
G R E E N C O A T
U K W I N D
01
I am pleased to present the Annual Report of
Greencoat UK Wind PLC for the year ended
31 December 2023.
Performance
My first annual statement as Chairman comes in the
year of the Companys 10th anniversary as a listed
company and it is pleasing that this year has seen a
further demonstration of the Company’s resilience
despite rising interest rates, volatile power prices and
broader turmoil in global financial markets.
With the final dividend for the year, our investors will
have received over £1 billion of dividends since listing.
The Company has consistently generated excess cash
flow beyond its dividend and has now reinvested
£906 million. Our net generating capacity now exceeds
2GW and last year we generated 4.7TWh of renewable
electricity, approximately 1.5 per cent of the UKs
electricity demand.
Net cash generated by the Group and wind farm SPVs
was £406 million, providing cover of 2.1x on
£197 million of dividends paid in the year.
By the end of 2023, the portfolio was generating
sufficient electricity to power 2.3 million homes and
avoiding CO
2
emissions of approximately 2.5 million
tonnes per annum through the displacement of
thermal generation.
Dividends and Returns
The target dividend for the year was 8.76 pence per
share. With the increased dividend for the final quarter
of 3.43 pence per share, to be paid on 29 February
2024, the declared dividends for 2023 will be 10 pence
per share. With our continuing strong cash flow and
dividend cover, we can confidently target a dividend
of 10 pence per share with respect to 2024, an increase
of 14.2 per cent above the target dividend for 2023,
significantly above December’s RPI of 5.2 per cent.
The Total Shareholder Return for the year was 5.4 per
cent. NAV decreased by 3 pence per share to
164.1 pence per share, including the effects of a
material increase in the portfolio discount rate. Since
listing, NAV per share has increased by significantly
more than RPI, as can be seen on the chart on page 17.
The Company’s aim remains to provide investors with
annual dividends that increase in line with RPI inflation.
In line with the higher interest rate environment, the
Company has continued to increase its discount rate
and thus returns to investors. The forecast 10 per cent
return to investors on NAV (net of all costs) includes
reinvestment of excess cash generation (dividend
cover) in addition to the dividends paid. Given the
nature of the Company’s business, we believe that this
return compares well with the 10 year gilt rate which
was 4.1 per cent immediately prior to the date of
this report.
Since listing, aggregate historical dividend cover of
2.0x has enabled the Company to reinvest £906 million
of excess cash generation. Given this greater
reinvestment and higher return, the Company has
been and is able to grow NAV per share significantly
more than its peers in addition to generating a higher
dividend yield.
Investment
During the year we invested £821 million into
Dalquhandy, London Array, South Kyle and Kype Muir
Extension wind farms, increasing net generating
capacity by 397MW.
Outlook and Strategy
Wind continues to be the most mature and widely
deployed renewable energy technology in the UK (30
per cent of GB electricity generation in 2023) with an
offshore wind target of 50GW for 2030 being an
important Government target in the delivery of its
2050 net zero emissions commitment. The Company
supports the UK Governments commitment to achieve
Net Zero by 2050 through acquiring operational wind
farms and thereby allowing developers and utilities to
recycle their capital into further renewable energy
projects, and by demonstrating the attractive long
term returns in the industry through our prudent
management of wind farms, thereby reducing the cost
of capital.
Our Investment Objective has remained unchanged
over the last 11 years since listing: to provide
shareholders with an annual dividend that increases in
line with RPI inflation while preserving the capital value
of the investment portfolio in real terms. This has been
more than achieved through a focused strategy of
investing only in wind farms and only in the UK while
maintaining a balanced exposure to power prices. Our
intention remains to adhere to this core strategy.
Chairman’s Statement
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
02
03
G R E E N C O A T
U K W I N D
Outlook and Strategy continued
The Company is investing in a mature and growing
market, and the Board believes that there should
continue to be further opportunities for investments
that are beneficial to shareholders.
The Company regularly reviews its capital allocation
policy by considering a range of options to optimise
returns to shareholders. In October 2023, as part of
this consideration, the Company announced an
increase in its annual dividend target for 2024 to
10 pence per share, an increase beyond December’s
RPI of 5.2 per cent. The dividend with respect to the
final quarter of the year will be 3.43 pence per share,
taking the annual dividend for 2023 to 10 pence
per share.
The Company also announced a £100 million share
buyback programme. The Company has bought back
14 million shares to date at an average cost of
142.1 pence per share.
The Company maintains a disciplined approach to
acquisitions, only investing when it is considered to be
in the interests of shareholders to do so. With the
Company’s share price currently trading at a discount
to NAV, the alternatives for capital allocation warrant
significant consideration.
We will also continue to look at opportunistic
disposals.
Through strong cash flow and dividend cover, coupled
with our disciplined approach, we are confident in our
ability to continue to meet the objectives of dividend
growth in line with RPI and capital preservation in
real terms.
Health and Safety and the Environment
As a responsible investor in operating wind farms, the
Company takes its health and safety responsibilities
very seriously. We work with our Investment
Manager to promote the highest standard of health,
safety and environmental management practices in
managing our portfolio of investments. Detailed key
performance indicators and the results of audits are
regularly reviewed by the Board and action taken
where necessary. We continue to monitor the
standards maintained by the operators of our
wind farm investments, to ensure that these are at least
in line with the wider industry, while seeking
continuous improvement.
Climate Change and Sustainability
As a Company investing in wind farms, our strategy
and activities naturally make a positive contribution
towards the worldwide goal of achieving a net zero
carbon emissions economy and limiting global
warming to 1.5°C. The Company also considers the
recommendations of the Taskforce for Climate-related
Financial Disclosures (“TCFD”). Detailed disclosures
can be found in the Strategic Report on
pages 29 to 37.
The Company qualified under Article 9 of the EU
Sustainable Financial Disclosure Regulation (“SFDR”)
in 2023. The Company’s Investment Policy supports
the environmental objective of climate change
mitigation that helps to facilitate the transition to a low
carbon economy. The Company will continue to
provide periodic reporting as required under Article 9
of the SFDR in its Annual Report.
In 2023, the Financial Conduct Authority published its
final rules regarding Sustainability Disclosure
Requirements (“SDR”). The Company, with support
from the Investment Manager, will consider the rules
and work to meet any obligations of the SDR in the
coming financial year.
The Board, Governance and Executive Management
At the AGM on 28 April 2023, Shonaid Jemmett-Page
retired from the Board and Nick Winser assumed the
role of Senior Independent Director. On behalf of the
whole Board, I would like to thank Shonaid for her
excellent contribution, first as Chairman of the Audit
Committee and then as Chairman of the Board. With
Shonaid being the last Director who was with the
Company at IPO, the succession of the whole Board
has now taken place. I am delighted to have taken over
as Chairman and look forward to the Company
continuing to deliver shareholder value.
On 1 May 2023, Jim Smith joined the Board bringing
his extensive experience from the electricity industry
including in offshore wind asset management, notably
leading SSE’s renewable business. Jim will oversee the
performance of the Investment Managers asset
management activities.
On 1 March 2024, Abigail Rotheroe will join the Board.
Abigail has extensive experience in the investment and
asset management industry, with a focus on ESG.
Abigail’s appointment broadens the experience of the
Board at a time when ESG considerations are
becoming a major factor in the sustainability of the
investment industry.
At the forthcoming AGM, Martin McAdam will retire
from the Board and on behalf of the Board, I would
also like to thank him for his services as a non-executive
Director of the Company since his appointment in 2015
and for his wisdom and insight.
The annual internal evaluation of the Board raised no
significant issues. The Group’s governance is further
described in the Corporate Governance Report on
pages 50 to 55.
Chairman’s Statement continued
Corriegarth
Chairman’s Statement continued
The Board, Governance and Executive Management
continued
In December 2023, we announced that Laurence
Fumagalli will be succeeded by Matt Ridley as one of
the investment managers, partnering Stephen Lilley.
The Board would like to thank Laurence for his vision
and unwavering commitment to list, manage and grow
the Company and look forward to continuing to work
alongside Stephen and Matt as the Company
continues to develop.
Annual General Meeting
Our AGM will take place at 2pm on 24 April 2024 at
the office of the Investment Manager.
Details of the formal business of the meeting are set
out in a separate circular which is sent to shareholders
with the Annual Report.
Lucinda Riches C.B.E.
Chairman
28 February 2024
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
04
05
G R E E N C O A T
U K W I N D
The Investment Manager
The investment management team covers all the skills and experience required to manage the Group: investment,
ownership, finance and operation. The Investment Manager is authorised and regulated by the Financial Conduct
Authority and is a full scope UK AIFM.
Since the Company’s IPO in March 2013, the investment management team has been led by Stephen Lilley and
Laurence Fumagalli.
In December 2023, the Company announced Laurence Fumagalli’s intention to step down from his role and that
Matt Ridley will succeed Laurence Fumagalli leading the investment management team alongside Stephen Lilley
from 1 March 2024.
Matt brings a broad range of renewable investment experience across both public and private investment vehicles
with a primary focus on wind. Prior to his appointment, Matt had led the private markets group of the Investment
Manager.
The other key figures in the Investment Manager’s team dedicated to managing the Company remain unchanged,
and the majority of the team have been involved in the management of the Group for over 5 years. The investment
management team has breadth and depth, with core competencies across investment, asset management and
finance, and is supported by the 130 strong wider team within the Investment Manager.
Investment Managers Report
Investment Portfolio
As at 31 December 2023, the Group owned investments in a diversified portfolio of 49 operating UK wind farms
totalling 2,007MW.
Investment Managers Report continued
06
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
14
1 Andershaw
2 Bicker Fen
3 Bin Mountain
4 Bishopthorpe
5 Braes of Doune
6 Brockaghboy
7 Burbo Bank Extension
8 Carcant
9 Church Hill
10 Clyde
11 Corriegarth
12 Cotton Farm
13 Crighshane
14 Dalquhandy
15 Deeping St. Nicholas
16 Douglas West
17 Drone Hill
18 Dunmaglass
19 Earl’s Hall Farm
20 Glass Moor
21 Glen Kyllachy
22 Hornsea 1
23 Humber Gateway
24 Kildrummy
25 Kype Muir Extension
26 Langhope Rig
27 Lindhurst
28 Little Cheyne Court
29 London Array
30 Maerdy
31 Middlemoor
32 North Hoyle
33 North Rhins
34 Red House
35 Red Tile
36 Rhyl Flats
37 Screggagh
38 Sixpenny Wood
39 Slieve Divena
40 Slieve Divena 2
41 South Kyle
42 Stronelairg
43 Stroupster
44 Tappaghan
45 Tom nan Clach
46 Twentyshilling
47 Walney
48 Windy Rig
49 Yelvertoft
27
31
8
5
12
19
28
29
25
41
2
15
20
34
35
39
3
24
11
30
7
45
17
33
38
49
43
37
26
4
44
9
13
6
21
42
40
47
23
22
36
32
18
16
46
48
1
10
07
G R E E N C O A T
U K W I N D
Investment Managers Report continued
Investment Portfolio continued
Breakdown of operating portfolio by value as at 31 December 2023:
Onshore/Offshore Geography
Asset Age Turbine Manufacturer
Assets
Hornsea 1 (16%)
London Array (8%)
Clyde (7%)
Stronelairg (5%)
Burbo Bank Extension (3%)
Other (32%)
Humber Gateway (9%)
Walney (7%)
South Kyle (6%)
Corriegarth (4%)
Brockaghboy (3%)
< 5 years (31%)
> 10 years (31%)
5-10 years (38%)
Siemens (39%)
Vestas (31%)
Nordex (14%)
Enercon (8%)
Senvion (4%)
GE (4%)
Onshore (55%)
Offshore (45%)
Investment Managers Report continued
08
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
Asset Management
The Group operates a sizeable and diverse portfolio of 49 assets with net generating capacity in excess of 2GW.
The Investment Manager has an experienced and specialist asset management team, which has expanded
considerably as the portfolio has grown. The team focusses on the safe and optimal performance of the Group’s
assets, as well as ensuring the delivery of the Company’s long term investment case. The team continues to move
forward several key initiatives to optimise the performance of the Group’s assets, creating long term value for
shareholders. Initiatives include, for instance, lease extensions, turbine performance upgrades, and revenue and
operating cost optimisation.
Operating and Financial Performance
Portfolio generation in the year was 4,743GWh, 13 per cent below budget owing to low wind.
The following table shows wind speed and portfolio generation since IPO:
UK weighted average wind speed Generation
(variation to long term mean) (variation to budget)
2013 (adjusted) +3% +8%
2014 -2% -3%
2015 +5% +8%
2016 -6% -6%
2017 -1% 0%
2018 -4% -6%
2019 -8% -11%
2020 +2% -3%
2021 -12% -20%
2022 -5% -5%
2023 -7% -13%
Variation to budget lies within reasonable statistical parameters. The annual standard deviation of wind speed is
6 per cent and the annual standard deviation of generation is 10 per cent (less than 2 per cent over 30 years).
Net cash generated by the Group and wind farm SPVs was £405.5 million and dividend cover for the year
was 2.1x.
For the year ended
31 December 2023
Group and wind farm SPV cash flows £’000
Net cash generation
(1)
405,510
Dividends paid (197,043)
Acquisitions (820,925)
Acquisition costs (2,742)
Share buybacks (9,439)
Share buyback costs (56)
Net amounts drawn under debt facilities 690,000
Upfront finance costs (4,939)
Movement in cash (Group and wind farm SPVs) 60,366
Opening cash balance (Group and wind farm SPVs) 160,851
Closing cash balance (Group and wind farm SPVs)
(2)
221,217
Net cash generation 405,510
Dividends 197,043
Dividend cover 2.1x
(1)
Alternative Performance Measure defined with comparative information on page 127.
(2)
Includes £40,119k security cash deposits recognised as a receivable in note 11 to the financial statements.
09
G R E E N C O A T
U K W I N D
Operating and Financial Performance continued
The following tables provide further detail in relation to net cash generation of £405.5 million:
For the year ended
31 December 2023
Net Cash Generation Breakdown
(1)
£’000
Revenue 785,608
Operating expenses (198,611)
Tax (62,661)
SPV level debt interest (20,044)
SPV level debt amortisation (47,129)
Other 28,133
Wind farm cash flow 485,296
Management fee (24,993)
Operating expenses (2,564)
Ongoing finance costs (62,834)
Other 5,013
Group cash flow (85,378)
VAT (Group and wind farm SPVs) 5,592
Net cash generation 405,510
(1)
Alternative Performance Measure defined with comparative information on page 127.
For the year ended
31 December 2023
Net Cash Generation Reconciliation to Net Cash Flows from Operating Activities
(1)
£’000
Net cash flows from operating activities
(2)
359,801
Movement in cash balances of wind farm SPVs 18,225
Repayment of shareholder loan investment
(2)
50,199
Finance costs
(2)
(67,773)
Upfront finance costs
(3)
4,939
Placing of security cash deposits
(4)
40,119
Net cash generation 405,510
(1)
Alternative Performance Measure defined with comparative information on page 127.
(2)
Consolidated Statement of Cash Flows.
(3)
£4,350k facility arrangement fees plus £589k professional fees per note 13 to the financial statements.
(4)
Note 11 to the financial statements.
Investment Managers Report continued
Investment Managers Report continued
10
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
Investment and Gearing
The following table lists investments in the year:
£m
Dalquhandy 51.5
London Array 443.6
South Kyle 315.9
Kype Muir Extension
(1)
9.9
Total 820.9
(1)
In addition to £39.4 million invested as at 31 December 2022.
All of the above investments were materially accretive to NAV (£174.2 million in total). The Investment Manager
believes that there should continue to be further opportunities for investments that are beneficial to shareholders.
The Company also continues to review its capital allocation, with 14 million shares having been repurchased as
of 27 February 2024 as part of its £100 million buyback programme announced in October 2023, at an average
cost of 142.1 pence per share. The Company may also use excess cash generation to return capital to shareholders
through further increased dividends, or for the repayment of debt.
As at 31 December 2023, Aggregate Group Debt was £2,375 million, comprising £1,390 million of term debt at
Company level, £400 million drawn under the Company’s revolving credit facility plus £585 million being the
Groups share of limited recourse debt in Hornsea 1. Cash balances (Group and wind farm SPVs) as at
31 December 2023 were £221.2 million (including £40.1 million of security cash deposits).
Gearing as at 31 December 2023 was 38 per cent of GAV, with a weighted cost of debt of 4.59 per cent across
a spread of maturities (October 2024 to March 2036):
Loan principal Loan margin Swap rate/SONIA All-in rate
Facility Maturity date £’000 %%%
RCF 29 Oct 24 400,000 1.75 5.20
(1)
6.95
NAB 4 Nov 24 50,000 1.15 1.06 2.21
CBA 14 Nov 24 50,000 1.35 0.81 2.16
CBA 6 Mar 25 50,000 1.55 1.53 3.08
CIBC 3 Nov 25 100,000 1.50 1.51 3.01
ANZ 3 May 26 75,000 1.45 5.92 7.37
NAB 1 Nov 26 75,000 1.50 1.60 3.10
NAB 1 Nov 26 25,000 1.50 0.84 2.34
CIBC 14 Nov 26 100,000 1.40 0.81 2.21
Lloyds 9 May 27 150,000 1.60 5.65 7.25
CBA 4 Nov 27 100,000 1.60 1.37 2.97
ABN AMRO 2 May 28 100,000 1.75 5.04 6.79
ANZ 3 May 28 75,000 1.75 5.38 7.13
Barclays 3 May 28 100,000 1.75 4.99 6.74
AXA 31 Jan 30 125,000 3.03
AXA 31 Jan 30 75,000 1.70 1.45 3.15
AXA 28 Apr 31 25,000 6.43
AXA 28 Apr 31 115,000 1.80 5.20
(1)
7.00
Hornsea 1 31 Mar 36 585,000 2.60
2,375,000 Weighted average 4.59
(1)
Facility pays SONIA as variable rate.
In June 2023, the Investment Manager led a placing of £640 million of new term loan facilities with 5 lenders, 2 of
which were new lending relationships to the Company. This included the refinancing of £150 million of term debt
tranches maturing in late 2023. The Company’s revolving credit facility is due to mature in October 2024 in
addition to £150 million of term loan tranches by March 2025. The Investment Manager has commenced
discussions with existing and new lenders to refinance the near-maturing revolving credit facility and term debt
and has found significant appetite.
Net Asset Value
The following table sets out the movement in NAV from 31 December 2022 to 31 December 2023:
£’000 Pence per share
NAV as at 31 December 2022 3,873,228 167.1
Net cash generation 405,510 17.5
Dividend (197,043) (8.5)
Depreciation (118,742) (5.1)
Power price (278,137) (12.0)
Inflation 132,279 5.7
Discount rate (263,252) (11.4)
Accretive investments 174,228 7.5
Share buybacks (9,496) 0.1
Other
(1)
75,421 3.3
NAV as at 31 December 2023 3,793,997 164.1
(1)
Includes REGOs and wind farm SPV budget updates.
Reconciliation of Statutory Net Assets to Reported NAV
As at As at
31 December 2023 31 December 2022
£’000 £’000
Operating portfolio 5,964,343 5,458,334
Construction portfolio 39,414
Cash (wind farm SPVs) 159,293 141,068
Fair value of investments
(1)
6,123,636 5,638,816
Cash (Group) 21,805 19,783
Other relevant assets/(liabilities) 23,556 (5,867)
GAV 6,168,997 5,652,732
Aggregate Group Debt
(1)
(2,375,000) (1,779,504)
NAV 3,793,997 3,873,228
Reconciling items
Statutory net assets 3,793,997 3,873,228
Shares in issue 2,312,131,799 2,318,089,989
NAV per share (pence) 164.1 167.1
(1)
Includes limited recourse debt of £585 million at Hornsea 1, not included in the Consolidated Statement of Financial Position.
11
G R E E N C O A T
U K W I N D
Investment Managers Report continued
Investment Managers Report continued
12
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
Health and Safety and the Environment
Health and safety is of key importance to both the Company and the Investment Manager.
The Investment Manager is an active member of SafetyOn, the UK’s leading health and safety focused
organisation for the onshore wind industry. The Investment Manager also has its own health and safety forum,
chaired by Stephen Lilley, where best practice is discussed and key learnings from incidents across the industry
are shared.
During the year, routine health and safety audits were conducted across 14 sites by an independent consultant.
In addition, the Investment Manager undertook 73 safety walks. No material areas of concern were identified
from all audits and safety walks performed in the year.
The Company has continued to contribute to local community funds and to invest in a range of local
environmental and social projects. In addition, the Company is funding a £250,000 programme to advance
knowledge on blade recycling and repurposing.
As at 31 December 2023, the portfolio powers 2.3 million homes and avoids the emission of 2.5 million tonnes
of CO
2
per annum.
Power Price
Long term power price forecasts are provided by a leading market consultant, updated quarterly, and may be
adjusted by the Investment Manager where more conservative assumptions are considered appropriate. Short
term power price assumptions reflect the forward curve as at 29 December 2023.
A discount of 10-20 per cent is applied to power price assumptions in all years to reflect the fact that wind
generation typically captures a lower price than the base load power price. During the year, the portfolio captured
an average price of £89.03/MWh versus an average N2EX index price of £94.47/MWh (6 per cent discount).
In addition to the above capture discount, a further discount is applied to reflect the terms of each PPA. The
price of some PPAs is expressed as a percentage of a given price index, whereas other PPAs include a fixed
£/MWh discount to the price index. Other PPAs pay a fixed £/MWh price for power. The table on the following
page sets out the terms of each PPA.
London Array
13
G R E E N C O A T
U K W I N D
Power Price continued
Power ROC
Ownership Net Net ROC/ ROC Price Price
Wind Farm Stake MW GWh Offtaker Price Expiry MWh end date Offtaker (Buy Out) (Recycle) Expiry
Andershaw 100% 35.0 105.8 Statkraft £4.20/MWh fee 31-Dec-36 0.9 28-Feb-37 Statkraft 93.0% 92.0% 31-Dec-36
Bicker Fen 80% 21.3 44.3 EDF 93.5% 31-Mar-27 1.0 31-Jul-28 EDF 93.0% 100.0% 31-Mar-27
Bin Mountain 100% 9.0 23.4 SSE 95% + £3.00/MWh fee 31-Dec-27 1.0 31-Mar-27 SSE/E.On 90.0% 93.8% 31-Dec-27
Bishopthorpe 100% 16.4 50.6 Axpo 95.0% 31-May-37 1.0 28-Feb-37 Axpo 95.0% 95.0% 31-May-37
Braes of Doune 100% 72.0 167.8 Erova 98.8% 11-Jul-37 1.0 31-Mar-27 Total 98.5% 100.0% 31-Mar-27
Brockaghboy 100% 47.5 157.3 SSE 96% + £3.00/MWh fee 28-Feb-33 0.9 31-Jul-37 SSE/E.On 95.0% 95.0% 28-Feb-33
Burbo Bank Extension 15.7% 40.4 155.0 CFD £209.32/MWh + CPI 31-Mar-36 n/a n/a n/a n/a n/a n/a
Carcant 100% 6.0 17.1 Axpo 95.0% 31-Oct-30 1.0 30-Jun-30 Total/E.On 90.0% 98.8% 31-Mar-27
Church Hill 100% 18.4 37.1 Energia 86.0% 31-Jul-30 1.0 30-Apr-32 Energia 90.0% 90.0% 31-Jul-30
Clyde 28.2% 147.3 457.2 SSE 94.0% 31-Dec-31 1.0 10-Sep-33 SSE 93.0% 94.0% 31-Dec-31
Corriegarth 100% 69.5 216.2 Centrica £3.79/MWh fee 14-May-32 0.9 30-Sep-36 Centrica 95.0% 75.0% 14-May-32
Cotton Farm 100% 16.4 51.0 Sainsbury's £60/MWh fixed 08-Mar-28 1.0 31-Jan-33 Sainsbury's 94.0% 100.0% 08-Mar-28
Crighshane 100% 32.2 59.7 Energia 86.0% 31-Jul-30 1.0 31-May-32 Energia 90.0% 90.0% 31-Jul-30
Dalquhandy 100% 42.0 109.6 BT £65.60/MWh fixed 31-Dec-31 n/a n/a n/a n/a n/a n/a
for 80% volume
95.0% for 20% volume
Deeping St. Nicholas 80% 13.1 29.8 EDF 93.5% 31-Mar-27 1.0 31-Mar-27 EDF 93.0% 100.0% 31-Mar-27
Douglas West 100% 45.0 129.2 BT £60/MWh fixed 31-Dec-33 n/a n/a n/a n/a n/a n/a
Drone Hill 51.6% 14.8 30.3 Statkraft £4.55/MWh fee 31-Dec-38 1.0 29-Feb-32 Statkraft 90.0% 90.0% 31-Dec-38
Dunmaglass 35.5% 33.4 129.9 SSE 95.0% 31-Mar-24 0.9 30-Sep-36 SSE 95.0% 95.0% 31-Mar-24
Earl's Hall Farm 100% 10.3 31.9 Sainsbury's £60/MWh fixed 20-Mar-28 1.0 31-Jan-33 Sainsbury's 94.0% 100.0% 20-Mar-28
Glass Moor 80% 13.1 28.9 EDF 93.5% 31-Mar-27 1.0 31-Mar-27 EDF 93.0% 100.0% 31-Mar-27
Glen Kyllachy 100% 48.5 145.7 Tesco £42.49/MWh + CPI 31-Dec-37 n/a n/a n/a n/a n/a n/a
for 50% volume
£1.50/MWh fee
for 50% volume
Hornsea 1 12.5% 150.0 668.1 CFD £195.86/MWh + CPI 31-Mar-36 n/a n/a n/a n/a n/a n/a
Humber Gateway 37.8% 82.8 320.4 E.On 96.0% 31-Mar-35 2.0 30-Apr-35 E.On 98.5% 100.0% 31-Mar-35
Kildrummy 100% 18.4 55.6 Sainsbury's £60/MWh fixed 10-May-28 1.0 28-Feb-33 Sainsbury's 94.0% 100.0% 10-May-28
Kype Muir Extension 49.9% 33.5 110.9 SSE £54.49/MWh fixed + 31-Dec-37 n/a n/a n/a n/a n/a n/a
CPI for 200GWh
Langhope Rig 100% 16.0 47.1 Centrica £3.23/MWh fee 06-Jan-31 0.9 31-Mar-35 Centrica 95.0% 75.0% 06-Jan-31
Lindhurst 49% 4.4 11.5 RWE 90.0% 08-Nov-28 1.0 30-Sep-30 RWE 90.0% 90.0% 08-Nov-28
Little Cheyne Court 41% 24.5 61.0 RWE 90.0% 31-Dec-27 1.0 30-Nov-28 RWE 90.0% 90.0% 31-Dec-27
London Array 13.7% 86.4 301.3 Orsted £75/MWh fixed 31-Dec-25 2.0 31-Dec-32 Orsted 95.0% 100.0% 31-Dec-25
Maerdy 100% 24.0 63.1 Statkraft £4.55/MWh fee 31-Dec-38 1.0 29-Feb-32 Statkraft 90.0% 90.0% 31-Dec-38
Middlemoor 49% 26.5 68.3 RWE 90.0% 08-Nov-28 1.0 30-Sep-30 RWE 90.0% 90.0% 08-Nov-28
North Hoyle 100% 60.0 185.8 Erova 99.0% 31-Dec-35 1.0 30-Jun-34 Total 98.5% 100.0% 31-Mar-27
North Rhins 51.6% 11.4 37.8 E.On 90.0% 31-Dec-24 1.0 31-Dec-29 E.On 90.0% 90.0% 31-Dec-24
Red House 80% 9.8 22.5 EDF 93.5% 31-Mar-27 1.0 31-Jul-28 EDF 93.0% 100.0% 31-Mar-27
Red Tile 80% 19.7 42.4 EDF 93.5% 31-Mar-27 1.0 31-Jul-28 EDF 93.0% 100.0% 31-Mar-27
Rhyl Flats 24.95% 22.5 70.3 RWE 90.0% 31-Dec-27 1.5 31-Jul-29 RWE 90.0% 90.0% 31-Dec-27
Screggagh 100% 20.0 44.4 Energia 80.0% 19-Oct-29 1.0 31-Jan-31 Energia 85.0% 85.0% 19-Oct-29
Sixpenny Wood 51.6% 10.6 28.5 Statkraft £4.55/MWh fee 31-Dec-38 1.0 29-Feb-32 Statkraft 90.0% 90.0% 31-Dec-38
Slieve Divena 100% 30.0 54.9 SSE 95% + £3.00/MWh fee 31-Dec-28 1.0 30-Nov-28 SSE/EDF 95.0% 95.0% 31-Dec-28
Slieve Divena 2 100% 18.8 48.7 SSE 95% + £3.00/MWh fee 31-Mar-37 0.9 28-Feb-37 SSE 95.0% 95.0% 31-Mar-37
South Kyle 100% 235.0 665.6 Vattenfall 100% + £1.90/MWh fee 01-Nov-38 n/a n/a n/a n/a n/a n/a
+ CPI
Stronelairg 35.5% 80.9 302.6 SSE 95.0% 31-Mar-24 0.9 31-Jul-34 SSE 95.0% 95.0% 31-Mar-24
Stroupster 100% 29.9 94.9 BT 87.0% 31-Oct-30 0.9 31-Aug-35 BT 92.0% 100.0% 31-Oct-30
Tappaghan 100% 28.5 68.6 SSE 95% + £3.00/MWh fee 31-Dec-27 1.0 15-Dec-27 SSE/E.On 90.0% 93.8% 31-Dec-27
Tom nan Clach 75% 30.0 124.7 CFD £110.35/MWh + CPI 31-Dec-34 n/a n/a n/a n/a n/a n/a
Twentyshilling 100% 37.8 125.6 Statkraft £2.25/MWh fee 31-Dec-39 n/a n/a n/a n/a n/a n/a
Walney 25.1% 92.2 363.1 Total 97.0% 30-Jun-26 2.0 31-Aug-31 Total 98.5% 100.0% 30-Jun-26
Windy Rig 100% 43.2 138.5 Statkraft £2.25/MWh fee 31-Dec-39 n/a n/a n/a n/a n/a n/a
Yelvertoft 51.6% 8.5 21.7 Statkraft £4.55/MWh fee 31-Dec-38 1.0 29-Feb-32 Statkraft 90.0% 90.0% 31-Dec-38
2,006.7 6,325.5
Investment Managers Report continued
Investment Managers Report continued
14
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2023
Power Price continued
The following table and chart show the assumed power price (post capture discount, pre PPA discount) and also
the price post a representative PPA discount (90 per cent x index price).
£/MWh (real 2022) 2024 2025 2026 2027 2028 2029 2030
Pre PPA discount 61.34 60.88 56.37 63.76 63.28 60.56 57.36
Post representative PPA discount 55.21 54.79 50.73 57.38 56.95 54.50 51.62
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Pre PPA discount 57.04 57.20 58.32 58.32 56.48 57.60 57.20 54.00 53.68 54.00
Post representative PPA discount 51.34 51.48 52.49 52.49 50.83 51.84 51.48 48.60 48.31 48.60
2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
Pre PPA discount 51.84 49.84 48.96 49.12 49.36 48.88 48.48 48.80 49.76 47.20
Post representative PPA discount 46.66 44.86 44.06 44.21 44.42 43.99 43.63 43.92 44.78 42.48
2051 2052 2053 2054 2055 2056 2057 2058 2059 2060
Pre PPA discount 47.28 45.68 46.40 46.40 43.84 43.60 42.24 40.88 41.60 40.80
Post representative PPA discount 42.55 41.11 41.76 41.76 39.46 39.24 38.02 36.79 37.44 36.72
The portfolio benefits from a substantial fixed revenue base. Furthermore, most fixed revenues are index linked
(RPI in the case of ROCs, CPI in the case of CFDs).
£/MWh (real 2022)
0
10
20
30
40
50
60
70
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Representative PPA price
Power price
15
G R E E N C O A T
U K W I N D
Power Price continued
The fixed revenue base means that dividend cover is robust in the face of extreme downside power price
sensitivities:
2024 2025 2026 2027 2028
RPI increase (%) 3.5 3.5 3.5 3.5
Dividend (pence/share) 10.00 10.35 10.71 11.09 11.48
Dividend 000) 231,213 239,306 247,681 256,350 265,322
Dividend cover (x)
Base case 2.0 2.0 2.0 2.3 2.4
£50/MWh 1.8 1.8 1.9 1.9 2.0
£40/MWh 1.6 1.6 1.7 1.7 1.7
£30/MWh 1.5 1.5 1.5 1.5 1.5
£20/MWh 1.3 1.3 1.3 1.2 1.2
£10/MWh 1.1 1.1 1.0 1.0 0.9
All numbers illustrative. Power prices real 2022, pre PPA discount.
The Group’s strategy remains to maintain an appropriate balance between fixed and merchant revenue. To the
extent that merchant revenues were to increase as a proportion of total revenues then new fixed price PPAs
would be entered into. However, it is likely that an appropriate revenue balance would be maintained through
the acquisition of new fixed revenue streams (for example, offshore wind CFD assets).
Inflation
Base case assumptions in relation to inflation are:
CPI: 2.5 per cent (all years)
RPI: 4.3 per cent (2024), 3.5 per cent (2025-2030), 2.5 per cent (2031 onwards)
The ROC price is inflated annually from 1 April each year based on the previous year’s average RPI. For example,
on 1 April 2024, the ROC price will increase by 9.7 per cent (average RPI over 2023).
CFD prices are also inflated annually from 1 April each year. However, in the case of CFDs, the price is inflated
based on January CPI. For example, on 1 April 2024, CFD prices will increase by 4.0 per cent (January 2024 CPI).
Given the explicit inflation linkage of a substantial proportion of portfolio revenue (ROCs, CFDs, certain PPAs) and
the implicit inflation linkage inherent in power prices, there is a strong link between inflation and portfolio return.
Investment Managers Report continued
South Kyle