(Yicai) Oct. 14 -- The GBP4.2 billion (USD5.2 billion) offshore wind farm in the United Kingdom owned by a joint venture of a subsidiary of Chinese state-owned clean energy giant SDIC Power Holdings is expected to start construction in December.

Inch Cape Offshore, a 50:50 JV between SDIC Power's Scottish unit Red Rock Renewables and Irish power giant Electricity Supply Board, has secured all the construction permits from the UK government and long-term supply deals for its offshore wind farm, Shanghai-based SDIC Power announced on Oct. 11.

The farm's first batch of wind turbines is expected to come on stream by November 2026, SDIC Power noted, adding that the project's target is to be fully operational by August 2027.

Red Rock and ESB will each invest GBP962 million (USD1.3) in cash to finance the construction of the project, with the remaining sum expected to be raised through bank loans, SDIC Power pointed out.

Located about 15 kilometers off the East coast of Angus in Scotland, the Inch Cape Offshore project will have 72 large offshore wind turbines with a capacity of 15 megawatts each for a total installed capacity of 1,080 MW.

The wind farm will have a return on investment of 6.6 percent and a return on equity of 8.1 percent, according to the latest feasibility study, based on contracted electricity prices of GBP37.35 (USD48.78) per megawatt-hours for 75 percent of the total power generation and of GBP54.23 per MWh for the remaining 25 percent.

The project benefits from its proximity to the shore, excellent wind resources, large-scale installation, and a 15-year power supply deal with the UK government, which includes an inflation-adjusted pricing mechanism and customer assurance, SDIC Power said.

Participating in the project will help the company enhance its portfolio of high-quality clean energy assets overseas and strengthen its core competitive advantages, SDIC Power pointed out.

As one of China's leading new energy companies, SDIC Power had a total installed capacity of nearly 40,857 MW at the end of last year, with clean energy accounting for over 69 percent of the total, according to the firm's 2023 earnings report.

SDIC Power [SHA: 600886] was trading down 0.9 percent at CNY16.29 (USD2.30) as of lunch break in Shanghai today.

Editor: Futura Costaglione