23rd Jun 2005 14:54
Renewable Energy Generation Ltd23 June 2005 Announcement for REG regarding Goonhilly Downs Wind Farm Renewable Energy Generation Ltd ("REG" or the "Company") the AIM listed investorin renewable generation projects today announces that it has concluded thepurchase of The Cornwall Light & Power Company Ltd ("CLP") which owns a 5.6MWwind farm situated on Goonhilly Downs in Cornwall. The wind farm is anaccredited generation station for the purposes of the Renewable Obligation Order2002 and the Climate Change Levy (General) Regulations 2001, and is entitled tothe issue of Renewable Obligation Certificates and Levy Exemption Certificatesin respect of its output. The consideration for this purchase, attributable tothe wind farm amounts to £4.5m and is being paid from REG's existing capitalresources. In addition, and subject to the project meeting certain outputcriteria, a further payment of up to £500,000 will be payable to the vendors. The wind farm owned by CLP was constructed in 1992 and consists of 14 VestasWindane 400kW turbines. The annual output of the project has averaged over11,000 MWh, equivalent to the annual electricity domestic consumption of morethan 5,000 people. It is one of the better onshore wind sites in England fromwhich to generate electricity with a long and established history of powerproduction. Based on the established output of the facility and advances in windturbine technology made over the past decade REG believes that improvements canbe made to increase environmentally friendly electricity production. The projecthas operated profitably for a number of years without a long-term power purchaseagreement but this is an option that REG will consider against the risks andopportunities in the electricity markets.REG believes that this is a sound first acquisition for the Company which isin-line with its policy of having a broad geographical spread of investments.Since the Company's launch on 16 May 2005, its Advisers Eastgate PowerManagement and Probyn & Company Inc have investigated a number of opportunities,particularly in Eastern Europe, and are optimistic about the prospects forinvestment by REG in the region. Contact details Andrew WhalleyEastgate Power Management - 01483 400425 Paul RichardsCollins Stewart - 0207 523 8308 Henry GewanterPositive Profile - 0207 489 2028 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WIND.L