Greencoat UK Wind generated just four-fifths of its expected power in 2021, as low wind speeds affected its 1.4GW of installed capacity across 43 onshore and offshore operating wind farms in the UK and Northern Ireland. But although generation was 20% below budget, at 2,933GWh, the company said that was “more than offset” by high power prices.
Power prices were “significantly above budget, primarily reflecting high gas prices in the second half of the year” – average ‘Day Ahead’ auction price was £117.43/MWh, compared with £35.23/MWh in 2020. It said, “Forward power prices over the period 2022-2025 remain high.
“… the Group should continue to benefit from strong cash generation over the next few years through its balanced exposure to power prices.”
The company noted in its annual report for the year to 31 December 2021 that with no debt at wind farm level “it can withstand significant short term variability in production relating to wind” and it mitigates the risk over the wind farms’ production efficiency by purchasing wind farms, where possible, with a proven operating track record.

Greencoat said it was making more allowance for an increasing number of grid outages when budgeting wind farm availability, noting that the increased occurrence “in part relates to grid enhancement works to accommodate the further deployment of wind generation”. It said “Grid outages are typically uncompensated and result in a whole wind farm being offline.”
It also expects more curtailment in Northern Ireland, also in part relating to the greater deployment of wind generation. Unlike in GB, curtailment in Northern Ireland is uncompensated, it said.
In the future Greencoat UK Wind expects to continue to invest in ROC wind farms, with CFD wind farms and subsidy free wind farms continuing to provide further diversified pipeline opportunities.

The acquisition of the 37.8MW Twentyshilling subsidy-free wind farm from Statkraft for £51.4 million is expected to complete in March 2022.