SDCL Energy Efficiency Income Trust is acquiring a 69MW renewable energy portfolio in the UK from United Utilities (UU)  for £100m (€118m).

SDCL Energy said it has agreed to buy United Utilities Renewable Energy (UURE), which owns a portfolio across 70 sites in the Northwest of England.

The portfolio comprises 90% solar photovoltaic, 9% wind and 1% hydro in terms of total generation.

Jonathan Maxwell, CEO of Sustainable Development Capital, SDCL Energy’s investment manager, said: “This project is an opportunity with distinct energy efficiency characteristics, providing essential clean energy services directly to an essential end-user, thereby helping to reduce the carbon emissions associated with supply from the grid.”

SDCL Energy is acquiring an operational on-site portfolio of scale with an investment grade counterparty, which will increase its exposure to the UK, enhancing its overall diversification by geography, technology, and counterparty, Maxwell said.

UK-listed water company UU, which has developed the solar, wind and hydro renewable assets since 2014, said following the disposal, the assets will continue to provide long-term green energy to the UU’s regulated water and wastewater business.

The company said the sale allows UU to recycle its capital employed in the UURE business back into the next phase of the firm’s journey to net zero.

Steve Mogford, the CEO of UU, said: “We are committed to our ambitious carbon pledges and target of achieving net zero carbon emissions by 2030. A key part of setting the foundations for that goal has been our renewable energy portfolio that, in recent years, we have built across our UU sites.

“With the portfolio now fully built-out and operating well, we are excited about the opportunity to recycle our investment in these assets to support the next steps in our plans to achieve net zero”.

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