* To sell 150 MW Ormonde wind park in Irish Sea - sources
* Could fetch 400-500 mln pounds - source
* Sale likely to start next year - source
* Move part of an overhaul Vattenfall announced in July
LONDON/FRANKFURT, Nov 25 Vattenfall
has mandated Morgan Stanley to organise the sale of a
British wind park as the Swedish utility scales back outside its
home market, two people familiar with the matter said.
Vattenfall has invested 2.3 billion euros ($3.1 billion) in
six UK wind parks since 2008.
The first power generating asset to come on the block will
be Vattenfall's Project Ormonde, a 150 megawatt facility in the
Irish Sea, the sources familiar with that transaction said. It
could fetch around 400-500 million pounds ($650-$810 million),
one of them said.
"The sale will likely start some time next year, as
Vattenfall is waiting for clarity on some regulatory issues,
which are crucial to determine the profitability and price of
the assets," one of the sources said.
A spokesman for Vattenfall said a reorganisation announced
in July would allow it to respond to tough European market
conditions, but it was "too early to say how Vattenfall will go
about optimising the value of its portfolio."
Morgan Stanley declined to comment.
Utility sector bankers expect Vattenfall to sell the
remaining UK wind assets later with proceeds likely to at least
match its initial investment.
Scandinavia's biggest utility is under pressure to pull back
to its better-performing home markets after acquisitions that
saddled it with 158 billion Swedish crowns ($24 billion) in debt
and led to major writedowns.
It said in July it would split into two units - one Swedish,
one for the rest of Europe - by the end of 2013, in what was
seen as a first step towards divesting the latter.
Vattenfall's UK wind business has a total capacity of around
612 megawatts (MW), including the Thanet offshore wind farm, one
of the largest offshore wind parks in the world at 300 MW
Vattenfall also has a large pipeline of planned onshore and
offshore wind projects in Britain, including the European
Offshore Wind Deployment Centre, a testing site for new types of
Utilities, infrastructure investors and pension funds were
likely to take a look at the Vattenfall assets, the sources
While investors seek returns on equity of 10 to 12 percent
for projects like Vattenfall's Ormonde, the profitability hinges
on the regulatory framework.
Britain gives direct subsidy support to renewable energy
projects, including wind farms. However, it is currently
changing its mechanism for awarding subsidy payments and the
legislative framework to support these changes is not expected
to be announced before Spring 2014. That is likely to leave some