Greencoat UK Wind

-6.47%

Greencoat UK Wind is a listed renewable infrastructure fund, focused on investing in a portfolio of operational onshore and offshore wind farms in the UK. The company was established in 2012 and is listed on the London Stock Exchange.
Business operations
Greencoat UK Wind acquires and operates wind farms across the UK, with a primary focus on onshore and offshore wind projects. The company’s investments are primarily in large-scale, high-quality projects that have a long operating life and benefit from long-term government-backed revenues.
The company generates revenue from its wind farms through a combination of power purchase agreements and government-backed subsidies. The power purchase agreements provide a fixed price for the electricity generated, while the subsidies provide a guaranteed minimum price for each unit of electricity generated.
Greencoat UK Wind has a strong track record of delivering stable and growing dividends to its shareholders. Its portfolio of wind farms has a high availability rate and benefits from a diversified mix of onshore and offshore projects.
Corporate governance
Greencoat UK Wind is committed to strong corporate governance and adheres to the UK Corporate Governance Code. The company has an independent board of directors, chaired by Tim Ingram, and is overseen by a dedicated audit and risk committee.
The company also has a focus on sustainability and takes into consideration environmental, social, and governance factors in its investment decisions. It has a dedicated sustainability committee and reports on its sustainability performance annually.
Financial performance
Greencoat UK Wind has a strong financial track record, with a history of delivering stable and growing dividends to its shareholders. The company’s portfolio has a high availability rate and benefits from long-term revenue contracts, providing a stable income stream. As of December 2020, the company had a market capitalization of approximately £2.6 billion and a dividend yield of 6.6%.
Risks and challenges
Like any company, Greencoat UK Wind carries a number of risks and faces certain challenges in its business operations. Some of the key risks and challenges for the company include:
- Regulatory and policy changes: Changes in government policies and regulations could impact the company’s revenue and profitability.
- Wind resource variability: Variations in wind speeds can impact the amount of electricity generated by the company’s wind farms, which could affect its financial performance.
- Competition: The company operates in a competitive market and may face challenges in acquiring new projects or securing favorable contracts.
- Financing and interest rate risk: The company may be exposed to interest rate risk and could face challenges in refinancing its debt obligations at favorable rates.
- Operational risks: The company’s wind farms are subject to technical failures and other operational risks that could impact their performance and revenue generation.
Overall, while there are risks and challenges associated with its business, Greencoat UK Wind has a strong track record and a diversified portfolio that helps mitigate these risks.

Greencoat UK Wind is the UK’s first listed renewable infrastructure fund solely focused on investing in operating UK wind farms. This makes it a pioneer in the growing market of renewable energy investment. Additionally, the company is committed to providing long-term, stable returns for its investors while also contributing to the UK’s transition to a low-carbon economy. Greencoat UK Wind’s portfolio currently comprises 36 wind farms, making it one of the largest operators in the sector. The company also has a strong track record of delivering consistent and growing dividends to its shareholders. Its focus on sustainability and green energy sets it apart from traditional energy companies and makes it a leader in the renewable energy industry.