213800ZPBBK8H51RX1652024-01-012024-12-31iso4217:GBP213800ZPBBK8H51RX1652023-01-012023-12-31iso4217:GBPxbrli:shares213800ZPBBK8H51RX1652024-12-31213800ZPBBK8H51RX1652023-12-31213800ZPBBK8H51RX1652023-12-31ifrs-full:IssuedCapitalMember213800ZPBBK8H51RX1652023-12-31ifrs-full:SharePremiumMember213800ZPBBK8H51RX1652023-12-31ifrs-full:CapitalRedemptionReserveMember213800ZPBBK8H51RX1652023-12-31ifrs-full:TreasurySharesMember213800ZPBBK8H51RX1652023-12-31ifrs-full:RetainedEarningsMember213800ZPBBK8H51RX1652023-01-012023-12-31ifrs-full:IssuedCapitalMember213800ZPBBK8H51RX1652023-01-012023-12-31ifrs-full:SharePremiumMember213800ZPBBK8H51RX1652023-01-012023-12-31ifrs-full:CapitalRedemptionReserveMember213800ZPBBK8H51RX1652023-01-012023-12-31ifrs-full:TreasurySharesMember213800ZPBBK8H51RX1652023-01-012023-12-31ifrs-full:RetainedEarningsMember213800ZPBBK8H51RX1652024-12-31ifrs-full:IssuedCapitalMember213800ZPBBK8H51RX1652024-12-31ifrs-full:SharePremiumMember213800ZPBBK8H51RX1652024-12-31ifrs-full:CapitalRedemptionReserveMember213800ZPBBK8H51RX1652024-12-31ifrs-full:TreasurySharesMember213800ZPBBK8H51RX1652024-12-31ifrs-full:RetainedEarningsMember213800ZPBBK8H51RX1652022-12-31ifrs-full:IssuedCapitalMember213800ZPBBK8H51RX1652022-12-31ifrs-full:SharePremiumMember213800ZPBBK8H51RX1652022-12-31ifrs-full:CapitalRedemptionReserveMember213800ZPBBK8H51RX1652022-12-31ifrs-full:RetainedEarningsMember213800ZPBBK8H51RX1652022-12-31213800ZPBBK8H51RX1652024-01-012024-12-31ifrs-full:IssuedCapitalMember213800ZPBBK8H51RX1652024-01-012024-12-31ifrs-full:SharePremiumMember213800ZPBBK8H51RX1652024-01-012024-12-31ifrs-full:CapitalRedemptionReserveMember213800ZPBBK8H51RX1652024-01-012024-12-31ifrs-full:RetainedEarningsMember
Greencoat UK Wind PLC
Annual Report
For the year ended 31December 2024
GREENCOA
T
UK WIND
GREENCOAT
UK WIND
Contents
Summary 01
Chairman’s Statement 02
Investment Manager’s Report 05
Strategic Report 19
Board of Directors 37
Report of the Directors 41
Directors’ Remuneration Report 44
Statement of Directors’ Responsibilities 48
Corporate Governance Report 49
Audit Committee Report 55
Independent Auditor’s Report 59
Financial Statements 68
Notes to the Financial Statements 74
Company Information 105
Supplementary Information 106
EU SFDR Disclosures 107
Defined Terms 123
Alternative Performance Measures 126
Cautionary Statement 128
All capitalised terms are defined in the list of defined terms on pages 123 to 125 unless separately defined.
GREENCOAT
UK WIND
01
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 5,484GWh of renewable electricity.
• Net cash generation (Group and wind farm SPVs) was £278.7million.
• The Group’s portfolio consists of 49 operating wind farm investments and net generating capacity of 2GW
as at 31December 2024.
• Accretive acquisition of a further 15.6per cent interest in Kype Muir Extension wind farm for £14.25million
from available cash and divestment of 40per cent interests in Douglas West and Dalquhandy wind farms for
£41million.
• Oversubscribed debt refinancing with existing lenders, which reduced the Company’s RCF to £400million,
and refinanced £325million of near maturing term debt with £425million of term debt on 5-7year tenors.
• The Company declared total dividends of 10 pence per share with respect to the year and is targeting
adividend of 10.35pence per share for 2025 (increased in line with December2024 RPI).
• The Company bought back 59.2million of its own shares at an average cost of 137pence per share.
• Aggregate Group Debt was £2,244million as at 31December 2024, equivalent to 39.7per cent of GAV.
Key Metrics
As at
31December 2024
As at
31December 2023
Market capitalisation £2,878.5 million £3,502.9 million
Share price 127.7 pence 151.5 pence
Dividends with respect to the year £226.8 million £231.4 million
Dividends with respect to the year per share 10 pence 10 pence
GAV* £5,652.7 million £6,169.0 million
NAV* £3,409.1 million £3,794.0 million
NAV per share* 151.2 pence 164.1 pence
Total Shareholder Return* (8.6) per cent 5.4 per cent
Discount to NAV 15.6 per cent 7.7 per cent
CO
2
emissions avoided during the year* 2.2 million tonnes 1.9 million tonnes
Homes powered during the year* 2.0 million homes 1.8 million homes
Funds invested in community projects in the year £5.7 million £4.4 million
* Alternative Performance Measures as defined on page 126.
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 in the UK.
• The UK has a long established regulatory regime, high wind resource and over £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.
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
02
Chairman’s Statement
I am pleased to present the Annual Report of
Greencoat UK Wind PLC for the year ended
31December 2024.
The Board and the Investment Manager recognise
that this has been a challenging year for shareholders
and have been working hard to continue to maximise
value for shareholders.
In July we saw the election of a government that is
committed to delivering a net zero electricity grid
by 2030, which requires the sector to grow two
to threefold over the next decade. As the leading
financial owner of operational UK wind farms, we are
well positioned to be a part of this transformation.
Our net generating capacity is 2GW and last year
we generated 5.5TWh of renewable electricity,
approximately 2per cent of the UK’s electricity demand.
During 2024, the portfolio generated sufficient
electricity to power 2.0 million homes and avoided CO
2
emissions of approximately 2.2 million tonnes through
the displacement of thermal generation.
Performance
Portfolio generation for the year was 5,484GWh,
13 per cent below budget owing to low wind and
lower availability, with a notable export cable failure at
Hornsea 1 in the first half of the year.
Despite lower than budgeted output, net cash
generated by the Group and wind farm SPVs was
£279 million and underlying dividend cover for the
period was 1.3x on £221million of dividends paid in
the year, normalised for the additional dividend of
1.23pence per share paid in early 2024 for 2023.
With the final dividend for the year, our investors
will have received £1,215 million of dividends since
listing and reinvested £935 million of excess cash
flowgeneration.
Dividends and Returns
Declared dividends for the year total 10 pence per
share, with the fourth and final quarterly dividend of
2.50pence per share to be paid on 28February 2025.
With our continuing strong cash flow and dividend cover
we can confidently target a dividend of 10.35pence
per share with respect to 2025, increased in line with
December’s RPI of 3.5per cent.
NAV decreased by 12.9pence per share to 151.2pence
per share, with the most significant movements from
power price forecasts, largely seen in the first half,
and the results of wind yield analysis, announced with
the Q4 NAV on 29 January 2025. As a result of the
decrease in the Company’s NAV, its TSR for the year
ending 31December 2024 was -8.6per cent.
Equity markets have continued to be challenging
throughout the year, with particular difficulties for
investment trusts. Whilst interest rates have started to
fall, longer term gilt rates have risen towards the end
of year and outflows from the UK stock market have
continued, resulting in a reduction in the share price
during the year. Some progress has been made to
address cost disclosure rules, which have served as an
investment disincentive for wealth and retail investors
in alternative investment trusts, but a final resolution
and implementation has yet to arrive.
The Company has maintained its discount rates at
higher levels, with the forecast return to investors being
10per cent return on NAV (net of all costs). This includes
reinvestment of excess cash generation (dividend
cover) in addition to the dividends paid. At the share
price on 31December 2024, the return to shareholders
is 12.5 per cent. Given the nature of the Company’s
business, we believe that this return compares well
with the 10 year gilt rate, which was 4.5 per cent
immediately prior to the date of thisreport.
Since listing, aggregate historical dividend cover of
1.8x, emanating from a higher return, has enabled the
Company to reinvest and grow its NAV considerably
more than its peers in addition to generating a higher
dividend yield.
Investment and divestment
During the year, we invested £14.25 million into a
further 15.6per cent interest in Kype Muir Extension
from free cash flow, increasing the Group’s stake
in the wind farm to 65.5 per cent. In December, we
completed our first disposals, generating £41million
from the sale of 40per cent interests in Dalquhandy
and Douglas West wind farms. These divestments were
made at their prevailing NAVs. Proceeds were used
to buy back shares and reduce the Company’s drawn
Revolving Credit Facility (RCF).
GREENCOAT
UK WIND
03
Chairman’s Statement continued
Investment and divestment continued
The Company has, and will continue, to deliver on
its objectives by allocating its capital wisely and to
the advantage of its shareholders. The Company
has bought back over £100 million of its shares at a
discount to NAV since October 2023. Over the next
five years, the Company expects that its excess cash
generation will exceed £1billion, and that additional
capital will be available through further disposals.
The Company has initiated a further share buy back
programme of £100million. Remaining excess capital
will be applied dynamically and allocated between
further, or accelerated, share buy backs and repaying
debt to reduce the Company’s gearing level.
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 2024).
The change in government during the year has resulted
in a significant increase in aspirations for the wind
sector and for renewable generation in general. Were
the government’s targets of doubling onshore and
triple offshore wind capacity to be realised by 2030,
we estimate an additional £175 billion of investment
would be needed.
The Company continues to support the UK
Government’s 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.
Demand for green electrons continues to strengthen
further. The continuing decarbonisation of transport
and heating through electrification, as well as green
hydrogen production, will require a further 30TWh
of renewable electricity per annum by 2030. This
represents approximately one tenth of the UK’s current
annual electrical demand and approximately five times
the Group’s current annual electrical output.
Our Investment Objective has remained unchanged
over the last 12 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. Since
listing, the dividend has been increased by more than
RPI, given the 14.2per cent increase in 2024, although
currently NAV has grown by slightly less than RPI.
Our objective has been 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, which we believe will continue to generate
market leading returns for investors.
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 addition to increasing the
dividend by more than RPI, and making an additional
dividend payment of £29 million in early 2024,
the Company has been buying back shares since
October 2023. During 2024, the Company bought
back 59.2million shares and at the date of this report
has bought back 73.5million shares at an average cost
of 136.8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. During 2024,
the Company made an accretive £14.25m follow-on
investment in Kype Muir Extension, which offered
shareholders better value than an additional buyback
of the Company’s shares. We continue to pursue
opportunistic disposals with a view to generating
further capital for allocation to the advantage of the
Company’s shareholders.
Through strong cash flow and dividend cover, coupled
with our disciplined approach to capital allocation, we
are confident in our ability to continue to meet the
objectives of dividend growth in line with RPI and long
term 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.
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
04
Chairman’s Statement continued
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 30 to 36.
The Company is an Article 9 fund under the EU
Sustainable Financial Disclosure Regulation (“SFDR”).
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 2024, following an assessment of the final FCA
Sustainability Disclosure Requirement (“SDR”) rules
by the Investment Manager, the Board approved the
adoption of the Sustainability Focus label, reflecting
the Company’s Investment Objective to invest mostly
in operating wind farms. Through investing in wind
farms, the Company generates renewable electricity
that helps to facilitate the transition to a low carbon
economy and contributes to the environmental
objective of climate change mitigation.
The Board, Governance and Executive Management
On 1March 2024, Abigail Rotheroe joined the Board.
Abigail brought with her extensive experience in the
investment and asset management industry, with a
focus on ESG.
On 1February 2025, Taraneh Azad joined the Board.
Taraneh brings with her experience in global energy
markets and strategic insight into sustainability and
energy transition.
Both Abigail and Taraneh bring experience that
complements and broadens the skillset of the Board.
At the Company’s AGM on 24 April 2024, Martin
McAdam retired from the Company and on behalf of
the Board, I would like to thank him for his services as a
non-executive Director 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49 to 54.
We have also announced that Stephen Lilley will be
stepping down from leading the Investment Manager
after the AGM on 24 April 2025. At that point, Matt
Ridley will be joined by Steve Packwood, as investment
managers of the Company. The Board would like
to thank Stephen for his vision, judgement and
unwavering commitment to list, manage and grow the
Company over the last 12years and look forward to
continuing to work alongside Matt and Steve as the
Company continues to develop.
We also recently announced that we have agreed a
change in the way that we remunerate the Investment
Manager. Given that the shares have traded at a
discount for some time now, we believed that it was
appropriate that the Investment Management fee
was linked to the value of the shares managed, so we
changed the basis of remuneration to the lower of
market capitalisation and NAV. This change took effect
at the beginning of 2025. In addition to fostering even
stronger alignment with the Company’s shareholders,
the revision in fee structure demonstrates sector
leadership and strong corporate governance.
The Board and Investment Manager are keen to
demonstrate their commitment to making the right
decisions for shareholders.
Annual General Meeting
At the AGM on 24 April 2024, the Company held a
Continuation Vote as a consequence of trading at
an average discount to NAV of 10.5 per cent over
the 12 month period ending 31 December 2023,
with 11 per cent of shareholders voting in favour of
discontinuation, therefore, the resolution confirmed
continuation. I reiterate my gratitude to shareholders
for their continued support of the Company on behalf
of the Board and the Investment Manager.
Given the shares have traded at a discount greater than
10 per cent on average during 2024, a continuation
vote with also be held at the AGM, which will take
place at 4pm on 24 April 2025 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
26February 2025
GREENCOAT
UK WIND
05
Investment Manager’s Report
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.
The team is led by Stephen Lilley and Matt Ridley.
As part of a phased succession process from the Company’s founders, Stephen Lilley will be stepping down after
the AGM on 24 April 2025. Matt Ridley will be joined by Steve Packwood as investment managers of the business.
Steve brings a broad experience in the renewables industry including the development, construction, financing
and operations of wind farms across Europe.
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 6years. The investment
management team has breadth and depth, with core competencies across investment, asset management and
finance, and is supported by the 120 strong wider team within the Investment Manager.
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
06
Investment Manager’s Report continued
Investment Portfolio
As at 31 December 2024, the Group owned investments in a diversified portfolio of 49 operating UK wind farms
totalling 1,983MW.
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
28
29
19
12
20
2
4
38
27
23
22
34
30
36
7
32
47
33
43
45
21
18
11
42
5
14
16
46
25
8
17
31
26
24
13
9
3
37
39
40
6
35
49
15
41
48
1
10
44
GREENCOAT
UK WIND
07
Investment Manager’s Report continued
Investment Portfolio continued
Breakdown of operating portfolio by value as at 31 December 2024:
Onshore/Offshore Geography
Onshore (55%)
Offshore (45%)
England (49%)
Scotland (41%)
Northern Ir
eland (7%)
Wales (3%)
Asset Age Turbine Manufacturer
< 5 years (14%)
> 10 years (36%)
5-10 years (50%)
Siemens (40%)
Vestas (29%)
Nordex (15%)
Enercon (8%)
Senvion (4%)
GE (4%)
Assets
Hornsea 1 (16.4%)
London Array (8.1%)
Clyde (6.9%)
Stronelairg (5.3%)
Brockaghboy (3.1%)
Other (31.2%)
Humber Gateway (8.7%)
South Kyle (7.2%)
Walney (6.5%)
Corriegarth (3.5%)
Burbo Bank Extension (3.1%)
Asset Management
The Group operates a sizeable and diverse portfolio of 49 assets with net generating capacity of 2GW. The
Investment Manager has an experienced and specialist asset management team, which has expanded considerably
as the portfolio has grown. The team focuses 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. Together these initiatives have, since 2016, added approximately £143million to NAV.
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
08
Investment Manager’s Report continued
Operating and Financial Performance
Portfolio generation in the year was 5,484GWh, 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
(variation to long term mean)
(1)
Generation
(variation to budget)
(2)
2013 (adjusted) +3% +12%
2014 -2% 1%
2015 +5% +15%
2016 -4% -2%
2017 1% -1%
2018 -2% -2%
2019 -6% -7%
2020 +4% -1%
2021 -10% -19%
2022 -3% -3%
2023 -5% -11%
2024 -3% -11%
(1)
Current year and historical figures updated against an updated 20 year average long term mean.
(2)
Current year and historical budget figures adjusted to reflect current P50 estimates.
The portfolio’s generating budget is a long term (30years) estimation. 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).
The Company periodically reviews the portfolio’s energy yield estimates and decided to harmonise the data set
used in long term wind speed correlation in conjunction with an expert third party. This has also added a number
of recent years to the correlation data which, as can been seen in the table above, are lower than long term
average UK wind speeds. This has served to lower the long term average, resulting in a 2.4per cent reduction in
long term generation expectations.
Net cash generated by the Group and wind farm SPVs was £278.7million and dividend cover for the year was 1.3x.
Group and wind farm SPV cash flows
For the year ended
31December 2024
£’000
Net cash generation
(1)
278,724
Dividends paid (249,777)
Net disposals
(2)
25,045
Transaction costs (522)
Share buybacks (80,418)
Share buyback costs (521)
Net amounts drawn under debt facilities (30,000)
Upfront finance costs (8,721)
Movement in cash (Group and wind farm SPVs) (66,190)
Opening cash balance (Group and wind farm SPVs) 221,217
Closing cash balance (Group and wind farm SPVs) 155,027
Net cash generation 278,724
Dividends
(3)
221,176
Dividend cover 1.3x
(1)
Alternative Performance Measure defined with comparative information on page126.
(2)
Includes net cash acquired and disposed.
(3)
Dividends adjusted by £28,601k for additional dividends paid to bring the 2023 dividend to 10pence per share.
GREENCOAT
UK WIND
09
Investment Manager’s Report continued
Operating and Financial Performance continued
The following tables provide further detail in relation to net cash generation of £278.7 million:
Net Cash Generation – Breakdown
(1)
For the year ended
31December 2024
£’000
Revenue 771,106
Operating expenses (216,436)
Tax (66,690)
SPV level debt interest (17,758)
SPV level debt amortisation (62,726)
Other (8,116)
Wind farm cash flow 399,380
Management fee (30,522)
Operating expenses (3,169)
Ongoing finance costs (92,224)
Other 6,582
Group cash flow (119,333)
VAT (Group and wind farm SPVs) (1,323)
Net cash generation 278,724
(1)
Alternative Performance Measure defined with comparative information on page 126.
Net Cash Generation – Reconciliation to Net Cash Flows from Operating Activities
(1)
For the year ended
31December 2024
£’000
Net cash flows from operating activities
(2)
391,011
Movement in cash balances of wind farm SPVs
(3)
(21,722)
Movement in security cash deposits
(4)
(26,779)
Repayment of shareholder loan investment
(2)
28,439
Finance costs
(2)
(100,946)
Upfront finance costs
(5)
8,721
Net cash generation 278,724
(1)
Alternative Performance Measure defined with comparative information on page126.
(2)
Consolidated Statement of Cash Flows.
(3)
Includes net cash acquired and disposed.
(4)
Note11 to the Consolidated Financial Statements.
(5)
£7,725k facility arrangement fees plus £1,216k professional fees plus £3,374k swap termination fees less £3,594k income on swap
termination per Note13 to the Consolidated Financial Statements.
South Kyle
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
10
Investment Manager’s Report continued
Investment and Gearing
The Investment Manager believes that there should continue to be further opportunities for investments that are
beneficial to shareholders in the medium and long term. The Company will maintain its disciplined approach to
acquisitions, and, at present, expects only to invest in further assets when it is considered to be more accretive
than buying back shares, or repaying debt.
The Company continued its £100million share buyback programme, having now repurchased 65.8million shares as
of 31December 2024, at an average cost of 138pence per share. The Company will initiate a further share buyback
programme of at least £100million. Remaining excess capital will be applied dynamically and allocated between
further, or accelerated, share buybacks and repaying debt to reduce the Company’s gearing level.
The Company recently announced its first disposal of a 40per cent stake in Dalquhandy and Douglas West, and
continues to progress further disposals, with the aim of generating further capital to deploy to the advantage of its
shareholders. In the near term, any disposal proceeds would be expected to repay the Company’s RCF.
As at 31December 2024, Aggregate Group Debt was £2,244million, comprising £1,464million
(1)
of term debt
at Company level, £270million drawn under the Company’s RCF plus £510million being the Group’s share of
limited recourse debt in Hornsea 1. Cash balances (Group and wind farm SPVs) as at 31December 2024 were
£155million.
Gearing as at 31December 2024 was 39.7per cent of GAV, with a weighted cost of debt of 4.68per cent across
a spread of maturities (November2026 to March2036):
Facility Maturity date
Loan principal
£’000
Loan margin
%
Swap rate/SONIA
%
All-in rate
%
Fair Value
of Swap
£’000
RCF 26 Sep 27 270,000 1.5000 4.8500
(2)
6.3500 —
NAB 1 Nov 26 75,000 1.5000 1.5980 3.0980 (4,050)
NAB 1 Nov 26 25,000 1.5000 0.8425 2.3425 (1,711)
CIBC 14 Nov 26 100,000 1.4000 0.8133 2.2133 (6,937)
Lloyds 9 May 27 150,000 1.6000 5.7360 7.3360 5,165
CBA 4 Nov 27 100,000 1.6000 1.3680 2.9680 (8,204)
ABN AMRO 2 May 28 100,000 1.7500 5.1330 6.8830 3,214
Virgin Money 3 May 28 50,000 1.7500 5.0880 6.8380 1,531
(3)
Barclays 3 May 28 25,000 1.7500 5.0880 6.8380 766
ANZ 3 May 28 75,000 1.7500 5.4750 7.2250 3,106
NAB 26 Sep 29 100,000 1.5500 3.6660 5.2160 (1,991)
ANZ 26 Sep 29 75,000 1.6000 3.6412 5.2412 (1,601)
AXA 31 Jan 30 125,000 — — 3.0300 —
AXA 31 Jan 30 75,000 1.7000 1.4450 3.1450 (9,938)
(4)
CBA 26 Sep 30 150,000 1.6500 3.6300 5.2800 (3,290)
AXA 28 Apr 31 25,000 — — 6.4300 —
AXA 28 Apr 31 115,000 1.8000 4.8500
(2)
6.5000 —
AXA 26 Sep 31 25,000 — — 5.4420 —
CIBC 26 Sep 31 100,000 1.7500 3.6545 5.4045 (2,276)
Hornsea 1
(5)
31 Mar 36 509,849 — — 2.6000 —
2,269,849 Weighted average 4.6770 (26,217)
(1)
Term debt comprises £1,490 million of loan facilities less £26 million relating to the fair value of interest rate swaps held at Group level.
(2)
Facility pays SONIA as variable rate.
(3)
Virgin Money debt tranche with Barclays swap.
(4)
AXA debt tranche with an NAB swap.
(5)
Reflecting the fair value of debt at SPV level, which is not included in the Consolidated Statement of Financial Position.
GREENCOAT
UK WIND
11
Investment Manager’s Report continued
Investment and Gearing continued
The Group completed a £725million refinancing of its RCF and near maturing term loans in September2024 with
its existing set of lenders. The process also involved migrating all lenders to a Common Terms Agreement, which
provides the Group with a consistent set of terms across its facilities.
The Company reduced the size of its RCF to £400million (down from £600million), of which £270million was drawn
at 31December 2024 and refinanced £325million of term loans that were due to expire between November2024
and May2026. The Company’s next maturing term facility expires in November2026.
As part of the debt refinancing, the Company migrated its interest rate swaps to Holdco. As a result, the Company
is no longer required to cash collateralise against any unfavourable positions of its interest rates swaps, which
was beneficial to the Company’s use of capital. A further consequence is that the Group must now reflect the fair
value of its interest rate swaps in its Aggregate Group Debt for its NAV calculation as well as within its loans and
borrowings on its Consolidated Statement of Financial Position.
Net Asset Value
The following table sets out the movement in NAV from 31 December 2023 to 31 December 2024:
£’000 Pence per share
NAV as at 31 December 2023 3,793,997 164.1
Net cash generation 278,724 12.4
Dividend (249,777) (11.1)
Depreciation (58,484) (2.6)
Power price (116,616) (5.2)
Inflation (31,765) (1.4)
Energy yield (146,844) (6.5)
Movements in fair value of debt 26,217 1.2
Share buybacks (80,939) 0.6
Accretive investment 5,494 0.2
Other
(1)
(10,903) (0.5)
NAV as at 31 December 2024 3,409,104 151.2
(1)
Includes annual budget updates and debt refinancing cashflows.
Reconciliation of Statutory Net Assets to Reported NAV
As at
31December 2024
£’000
As at
31December 2023
£’000
Operating portfolio 5,516,201 5,964,343
Cash (wind farm SPVs) 135,892 159,293
Fair value of investments
(1)
5,652,093 6,123,636
Cash (Group) 19,135 21,805
Other relevant assets/(liabilities) (18,492) 23,556
GAV 5,652,736 6,168,997
Aggregate Group Debt
(1)
(2,243,632) (2,375,000)
NAV 3,409,104 3,793,997
Reconciling items — —
Statutory net assets 3,409,104 3,793,997
Shares in issue 2,254,109,306 2,312,131,799
NAV per share (pence) 151.2 164.1
(1)
Includes limited recourse debt of £510 million at Hornsea 1, not included in the Consolidated Statement of Financial Position.
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
12
Investment Manager’s Report continued
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 13 sites by an independent consultant. In
addition, the Investment Manager undertook 44 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 has funded a £250,000 programme to advance knowledge on blade
recycling and repurposing. During the year, the ‘Added Value Coatings’ research project concluded and identified
that successful grinding of recycled materials could be added to new turbine materials without compromising the
physical properties of the blades.
During 2024, the portfolio powered approximately 2.0 million homes and avoided the emission of approximately
2.2 million tonnes of CO
2
.
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 31December 2024.
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 £64.64/MWh versus an average N2EX index price of £72.45/MWh (11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.
Stronelairg
GREENCOAT
UK WIND
13
Investment Manager’s Report continued
Power Price continued
Power ROC
Wind Farm
Ownership
Stake
Net
MW
Net
GWh Offtaker Price Expiry
ROC/
MWh
ROC
end date Offtaker
Price
(Buy Out)
Price
(Recycle) Expiry
Andershaw 100% 35.0 97.8 Statkraft £5.23/MWh fee 28-Feb-37 0.9 28-Feb-37 Statkraft 93.0% 95.0% 28-Feb-37
Bicker Fen 80% 21.3 42.9 EDF 93.5% 31-Mar-27 1.0 31-Jul-28 EDF 93.0% 100.0% 31-Mar-27
Bin Mountain 100% 9.0 20.3 SSE 95% + £2.80/MWh fee 18-Jan-28 1.0 31-Mar-27 SSE/E.On 90.0% 90.0% 18-Jan-28
Bishopthorpe 100% 16.4 46.4 Axpo 95.0% 31-May-37 0.9 28-Feb-37 Axpo 95.0% 95.0% 31-May-37
Braes of Doune 100% 72.0 160.2 Erova 98.75% 11-Jul-37 1.0 31-Mar-27 Total 98.5% 100.0% 31-Mar-27
Brockaghboy 100% 47.5 160.6 SSE 96% + £2.80/MWh fee 28-Feb-28 0.9 31-Jul-37 SSE 95.0% 95.0% 28-Feb-33
Burbo Bank Extension 15.7% 40.4 146.3 CFD £208.35/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 98.5% 100.0% 31-Mar-27
Church Hill 100% 18.4 35.4 Energia 91.0% 31-Jul-30 1.0 30-Apr-32 Energia 90.0% 90.0% 31-Jul-30
Clyde 28.2% 147.3 457.3 SSE 94.0% 31-Dec-31 1.0 10-Sep-33 SSE 93.0% 94.0% 31-Dec-31
Corriegarth 100% 69.5 209.0 Centrica £4.29/MWh fee 14-May-32 0.9 30-Sep-36 Centrica 95.0% 75.0% 14-May-32
Cotton Farm 100% 16.4 48.0 Sainsbury’s £60/MWh fixed 01-Mar-28 1.0 31-Jan-33 Sainsbury’s 94.0% 100.0% 01-May-28
Crighshane 100% 32.2 59.1 Energia 91.0% 31-Jul-30 1.0 31-May-32 Energia 90.0% 90.0% 31-Jul-30
Dalquhandy 60% 25.2 61.2 BT £65.60/MWh fixed
for 80% volume
£4.15/MWh fee
for 20% volume
31-Dec-32 n/a n/a n/a n/a n/a n/a
Deeping St. Nicholas 80% 13.1 30.0 EDF 93.5% 31-Mar-27 1.0 31-Mar-27 EDF 93.0% 100.0% 31-Mar-27
Douglas West 60% 27.0 68.9 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 27.0 Statkraft £6.08/MWh fee 31-Dec-38 1.0 29-Feb-32 Statkraft 90.0% 92.0% 31-Dec-38
Dunmaglass 35.5% 33.4 129.9 SSE 95.0% 28-Mar-24 0.9 30-Sep-36 SSE 95.0% 95.0% 28-Mar-34
Earl’s Hall Farm 100% 10.3 29.8 Sainsbury’s £60/MWh fixed 31-Mar-28 1.0 31-Jan-33 Sainsbury’s 94.0% 100.0% 31-Mar-28
Glass Moor 80% 13.1 27.0 EDF 93.5% 31-Mar-27 1.0 31-Mar-27 EDF 93.0% 100.0% 31-Mar-27
Glen Kyllachy 100% 48.5 138.3 Tesco £42.49/MWh + CPI
for 50% volume
£1.50/MWh+ CPI fee
for 50% volume
31-Dec-36 n/a n/a n/a n/a n/a n/a
Hornsea 1 12.5% 150.0 661.9 CFD £194.31/MWh + CPI 31-Mar-36 n/a n/a n/a n/a n/a n/a
Humber Gateway 37.8% 82.8 310.8 E.On 96.0% +£13.70/MWh fee 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-Jun-28 1.0 28-Feb-33 Sainsbury’s 94.0% 100.0% 10-Jun-28
Kype Muir Extension 65.5% 44.0 145.7 SSE £55.17/MWh fixed +
CPI for 200GWh
31-Dec-37 n/a n/a n/a n/a n/a n/a
Langhope Rig 100% 16.0 47.0 Centrica £4.05/MWh fee 06-Jan-31 0.9 31-Mar-35 Centrica 95.0% 75.0% 06-Jan-31
Lindhurst 49% 4.4 10.9 RWE 94.0% 08-Nov-28 1.0 30-Sep-30 RWE 90.0% 90.0% 08-Nov-28
Little Cheyne Court 41% 24.5 58.7 RWE 94.0% 31-Dec-27 1.0 30-Nov-28 RWE 90.0% 90.0% 31-Dec-27
London Array 13.7% 86.4 307.8 Orsted £75/MWh fixed 31-Dec-25 2.0 31-Dec-32 Orsted 95.0% 100.0% 31-Dec-25
Maerdy 100% 24.0 57.2 Statkraft £6.08/MWh fee 31-Dec-38 1.0 31-Mar-33 Statkraft 90.0% 92.0% 31-Dec-38
Middlemoor 49% 26.5 66.1 RWE 94.0% 08-Nov-28 1.0 30-Jun-33 RWE 90.0% 90.0% 08-Nov-28
North Hoyle 100% 60.0 172.3 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 37.5 Constellation 97.5% 31-Dec-29 1.0 31-Dec-29 Total 98.5% 100.0% 31-Mar-27
Red House 80% 9.8 21.8 EDF 93.5% 31-Mar-27 1.0 31-Jul-28 EDF 93.0% 100.0% 31-Mar-27
Red Tile 80% 19.7 41.1 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 70.5 RWE 90.0% 31-Dec-27 1.5 31-Jul-29 RWE 90.0% 90.0% 31-Dec-27
Screggagh 100% 20.0 42.3 Energia 85.0% 31-May-29 1.0 31-Jan-31 Energia 85.0% 85.0% 31-May-29
Sixpenny Wood 51.6% 10.6 25.3 Statkraft £6.08/MWh fee 31-Dec-38 1.0 31-Mar-33 Statkraft 90.0% 90.0% 31-Dec-38
Slieve Divena 100% 30.0 50.2 SSE 90% + £2.80/MWh fee 17-Nov-28 1.0 30-Nov-28 SSE/EDF 90.0% 90.0% 17-Nov-28
Slieve Divena 2 100% 18.8 47.7 SSE 95% + £2.80/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
+ CPI
01-Nov-38 n/a n/a n/a n/a n/a n/a
Stronelairg 35.5% 80.9 294.1 SSE 95.0% 31-Jul-37 0.9 31-Mar-38 SSE 95.0% 95.0% 28-Mar-34
Stroupster 100% 29.9 88.4 BT 87.0% 31-Oct-30 0.9 31-Aug-35 BT 92.0% 100.0% 31-Oct-30
Tappaghan 100% 28.5 61.4 SSE 95% + £2.80/MWh fee 18-Jan-28 1.0 30-Jun-29 SSE/E.On 90.0% 90.0% 18-Jan-28
Tom nan Clach 75% 30.0 121.1 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% 92.2 357.6 Total 97.0% 30-Jun-26 2.0 31-Aug-31 Total 98.5% 100.0% 30-Jun-26
Windy Rig 100% 43.2 141.1 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 20.6 Statkraft £6.08/MWh fee 31-Dec-38 1.0 31-Mar-33 Statkraft 90.0% 90.0% 31-Dec-38
1,982.4 6,118.1
Greencoat UK Wind PLC Annual Report for the year ended 31 December 2024
14
Investment Manager’s Report continued
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 2023) 2025 2026 2027 2028 2029 2030 2031
Pre PPA discount 73.26 64.86 63.50 64.80 65.52 65.12 63.60
Post representative PPA discount 65.93 58.37 57.15 58.32 58.97 58.61 57.24
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
Pre PPA discount 61.60 61.04 61.04 60.08 62.72 62.56 60.80 60.88 56.96 55.52
Post representative PPA discount 55.44 54.94 54.94 54.07 56.45 56.30 54.72 54.79 51.26 49.97
2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
Pre PPA discount 54.64 54.88 56.16 55.52 54.80 53.92 53.36 54.48 52.56 53.04
Post representative PPA discount 49.18 49.39 50.54 49.97 49.32 48.53 48.02 49.03 47.30 47.74
2052 2053 2054 2055 2056 2057 2058 2059 2060 2061
Pre PPA discount 51.76 50.80 50.56 50.48 50.80 48.64 46.80 45.92 44.00 43.20
Post representative PPA discount 46.58 45.72 45.50 45.43 45.72 43.78 42.12 41.33 39.60 38.88
0
10
20
30
40
50
60
70
2025
2026
2027
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
2061
2060
Representative PPA price
Power price
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).
The fixed revenue base means that dividend cover is robust in the face of extreme downside power price sensitivities:
2025 2026 2027 2028 2029
RPI increase (%) 3.5 3.5 3.5 3.5
Dividend (pence/share) 10.35 10.71 11.09 11.48 11.88
Dividend (£ 000) 233,300 241,466 249,917 258,664 267,717
Dividend cover (x)
Base case 1.8 1.9 1.9 2.0 2.1
£50/MWh 1.5 1.6 1.6 1.6 1.6
£40/MWh 1.3 1.5 1.4 1.4 1.4
£30/MWh 1.2 1.3 1.2 1.2 1.2
£20/MWh 1.0 1.1 1.0 1.0 0.9
£10/MWh 0.9 0.9 0.8 0.8 0.7
All numbers illustrative. Power prices real 2023, pre PPA discount.