Norges Bank Investment Management has acquired a 37.5% stake of the Race Bank Wind Farm in a deal worth £330 million.
Race Bank Wind Farm, which is located off the Lincolnshire coast, comprises 91 wind turbines with a combined capacity of 573MW and has been operational since 2018.
The stake bought by Norges Bank Investment Management was purchased from Macquarie Asset Management. Arjun Infrastructure Partners will remain co-investor for 12.5% of the wind farm, with energy major Ørsted remaining as a 50% owner and operator of the wind farm.
As part of the deal, Norges Bank will take on part of a £644 million debt facility currently attached to the wind farm.
Wind investment needs to speed up
With analysis from the Institute for Public Policy and Research (IPPR) revealing that the UK will miss its offshore wind deployment targets by a generation, it is clear that investment and development need to increase at a significant pace. Research commissioned by RenewableUK has highlighted the benefits of strong investment in the sector, with a recent report noting that an electricity system powered primarily by offshore wind will be more cost-effective for consumers than other sources of power.
Last month, UK Research and Innovation (UKRI) announced that it had approved an £85.6 million funding package to support the development of new offshore wind technologies. Part of this funding will be used to support five PhD research projects each year, as well as upgrading research facilities to be able to test turbine blades up to 150 meters long.
Meanwhile, Ørsted is boosting its investment in the sector, announcing that it has taken a final investment decision on a new 300MW battery energy storage system (BESS) to be installed alongside the onshore converter station for Hornsea 3 Offshore Wind Farm.
