CDPQ sought to purchase a 25% stake in the 630 MW London Array offshore wind farm from DONG Energy. An important element of the transaction was the provision of an Investor Power Purchase Agreement (IPPA) under which DONG would purchase CDPQ’s share of generation and associated green benefits from the wind farm for a 15-year term from the start of commercial operation. CDPQ required a comprehensive analysis of the wholesale electricity market in the United Kingdom and a detailed understanding of the underlying policy environment to support their bid. This was particularly challenging as the Electricity Market Reform (EMR) plans were under continuous development through the period of the transaction, which necessitated regular updates for the client and revisions to our analysis to reflect the latest outlook.
IPA provided comprehensive commercial advisory to CDPQ through the duration of the transaction, which included the following:
The sale successfully concluded in January 2014.