RPMI Railpen makes direct investment in UK’s renewable energy sector

RPMI Railpen (Railpen), which manages £30 billion of assets on behalf of the railways pension schemes, has acquired a wind farm under construction in Scotland in a direct investment in the UK renewable energy sector.

Railpen purchased Tralorg Wind Farm in South Ayrshire, southwest Scotland, from global renewable energy developer, BayWa r.e. The farm, consisting of eight 2.35 megawatt (MW) turbines, is scheduled to be operational next year.

Lewis Vanstone, Deputy Portfolio Manager of Railpen’s Long-term Income Fund, said: “We are delighted to have acquired Tralorg Wind Farm. The wind farm’s sustainable, long-dated and asset-backed income characteristics dovetail perfectly with our core investment themes. The experience and expertise of our partners BayWa ensure this deal will be of great long-term value for members.”

Tralorg Wind Farm is one of the UK’s few onshore wind farms with a Contract for Difference (CfD) in place which effectively guarantees the price of the electricity it generates for 15 years. The wind farm will have a capacity of 18.8MW – enough to power up to 15,000 homes.

BayWa r.e’s dedicated UK service business, BayWa r.e. Operation Services Limited, will provide Railpen with ongoing operations and commercial management services for Tralorg Wind Farm.

Gordon MacDougall, Managing Director, BayWa.r.e. UK Ltd,. said:
“We’re very pleased to have secured this first project sale with RPMI Railpen. We look forward to developing an ongoing relationship with them and, once the project is operational, ensuring that the wind farm gives them the best return on their investment through provision of ongoing asset management services.”