Energy firm SSE has announced it will sell windfarm interests in Scotland and Northern Ireland for £140m, towards a new fund to float on the London Stock Exchange.

SSE is to invest up to £43m of its sale proceeds in the fund.

The sale is dependent on listing and fundraising by wind-farm investment fund Greencoat UK Wind.

SSE says its investment will be reduced if Greencoat UK Wind's fundraising is over-subscribed, but will not fall below £10m.

The UK government has committed to subscribe for £50m of shares in Greencoat UK Wind.

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SSE will sell off its 50% stake in the Braes of Doune wind farm near Stirling, as well as its 100% stake in the 28.5MW Tappaghan site in Northern Ireland.

It will also sell its 100% stakes in the 6MW Carcant wind farm in the Scottish Borders and 9MW Bin Mountain site in Northern Ireland.

SSE said it would continue to have the operation and maintenance contract for all four of the wind farms.

The firm has also entered into agreements to purchase the power from three of the wind farms, Tappaghan, Carcant, and Bin Mountain, which have a combined output of 43.5MW.

SSE finance director Gregor Alexander, said: "This agreement represents the latest step in a programme of acquisitions and disposals to optimise our wind farm portfolio.

"Fundamentally, SSE owns generation capacity to meet the electricity needs of its own customers, which is why we were pleased to be able to establish new PPAs before disposing of these assets."

He added: "The proceeds from these disposals will support our investment in new renewable assets in the coming financial year."

(IT)