Vestas invests in CIP to expand project development capability

Vestas has agreed to acquire a 25% stake in investment management company Copenhagen Infrastructure Partners.

It explained that it aims to expand its presence in project development and create value in areas of the renewable energy value chain beyond its existing activities.

The Danish company has also launched a new development business unit – Global Development – having gradually moved into that field in recent years.

The firm added that despite the relationship with CIP, Vestas will be free to work with other developers, utilities and project owners on other development projects.

Vesta will acquire the minority stake in CIP for €500 million – €180 million as upfront payment and €320 million to be paid out in tranches as CIP reaches unspecified key performance indicators outlined in the agreement.

The two companies expect the deal to close in the first quarter of 2021.

CIP plans to reinvest proceeds from the deal in the company and its various funds in the coming years, it stated.

Vestas and CIP will work together on certain projects in the early phases of the development cycle, according to the companies.

The turbine manufacturer has previously supplied nearly 450MW of onshore wind turbines for CIP projects in the US, and is due to supply nearly 590MW of offshore wind turbines to the investor’s Taiwanese wind farms.

Vestas will have a seat on CIP’s board of directors, which it will use to discuss the investors’ strategic direction, but will not be involved in decision making at fund, investment or project level, including selection of turbine supplier.

Meanwhile, Vestas added that it will not grant CIP any other preferential consideration as a customer in regards to Vestas’ development pipeline or turbine sales.