Erg acquires a wind farm in Scotland

New wind farm for Erg in Scotland. The group headed by the Garrone and Mondini families, through its subsidiary Erg Uk holding, has signed a share purchase agreement with Baywa re, a leading operator in the renewable energy sector, for the acquisition of 100% of the shares of Baywa re Uk (Jubilee), a company that owns Broken cross wind farm, which owns a 43.2 megawatt onshore wind farm in South Lanarkshire. The enterprise value of the transaction is £60m and the deal is expected to close by January 2025.

The park, which will come into operation in the fourth quarter of 2024, consists of nine turbines of 4.8 megawatts each and benefits from a 15-year contract for difference, 'in line with the group's revenue securitisation strategy,' explains a company note. Annual production is estimated at around 120 gigawatt hours, corresponding to 46 kilotonnes of CO2 emissions avoided each year, equal to the needs of more than 28,000 households.

"With the acquisition of Broken cross, Erg," says CEO Paolo Merli, "further consolidates its presence in the UK, a central country in the group's strategy of growth and geographical diversification, where we will reach a total installed capacity of almost 300 megawatts in addition to 47 megawatts under construction. The plant will contribute to the group's results as early as 2025 and, thanks to its proximity to our plants, will ensure operational synergies'.