United Utilities in £100m sale of its renewable energy business

United Utilities (UU) announced a £100m deal for its renewable energy business, today.

The Warrington-based water and wastewater utility said it is selling its non-appointed United Utilities Renewable Energy operation to London-based SDCL Energy Efficiency Income Trust (SEEIT) for £100m enterprise value.

UU has developed a portfolio of solar, wind and hydro renewable assets since 2014 and UURE comprises 69 MW of renewable generation assets across 70 sites, including Europe’s first commercial floating solar array on Godley Reservoir near Hyde in Manchester.

Following the sale these assets will continue to provide long term green energy to UU’s regulated water and wastewater business, United Utilities Water.

UU said the sale allows it to recycle its capital employed in the UURE business back into the next phase of its journey to net zero, while continuing to source green energy from the existing UURE portfolio.

Completion of the sale is expected in the coming months.

Royal Bank of Canada Capital Markets acted as financial advisor to UU and Norton Rose Fulbright acted as legal advisor.

UU chief executive, Steve Mogford, 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.”

He added: “We are confident that SEEIT will be an excellent long term partner for the UU group, as the UURE asset portfolio moves into the next phase of its life cycle.”