London Electricity has bought Northern Electric's wind power portfolio for £3.5m.

The deal is part of a £6.5m investment by London Electricity in renewable energy technology.

The acquisition by the power firm's generation subsidiary, London Power Company (LPC), includes operational on-shore windfarms in the North-East, at Kirkheaton and High Hedley Hope, as well as a proposed offshore development between the mouth of the River Tees and Redcar, known as Northern Offshore Wind Ltd.

In a second agreement, LPC has agreed to invest £3m in Marine Current Turbines Ltd (MCT) in the South West.

MCT has been awarded a research and development grant from the Department of Trade and Industry to install the first underwater turbine off the North Devon coast.

LPC's proposed investment will enable MCT to identify other potential sites around the UK coast, which has some of the world's highest tidal currents.

LE Group's chairman and chief executive, Bruno Lescoeur, said: "Our acquisition of Northern Electric's wind portfolio makes the group a significant wind power generator.

"Our involvement with MCT proves that we are also committed to seeking novel ways to harness the UK's natural resources to meet the company's energy needs in future."

The Minister for Energy, Brian Wilson, said: "London Electricity's expansion into renewables is very good news. This is further evidence that renewables is moving into the mainstream of energy production.

"I am hopeful that their investment will lead to the development of significant projects."