Onshore wind farm projects reach financial close
Construction has already started Airies wind farm in Dumfries and Galloway, and the Sorbie wind farm in North Ayrshire and both wind farms are expected to be in operation by February 2017.
The Sorbie wind farm was called in for determination by the Scottish Ministers in January 2015.
The financing was arranged with the Bank of Tokyo-Mitsubishi UFJ. This is Velocita’s second project in Scotland following the merger with 2020 Renewables in July 2012. The deal comes on the back of the successful €200m financing of the 120 MW Vaite-Bussiere, Rougemont-Baume 1 and Rougemont-Baume 2 wind farms in France, which reached financial close in December 2015.
Fraser Gillies, who led the deal on behalf of Wright, Johnston & Mackenzie LLP, said: “It’s always pleasing to see a project which has secured planning consent progress to fruition, and all the more so in the challenging market conditions faced by the onshore wind industry. The team at WJM has an outstanding reputation for planning advice for onshore wind energy, and we were very pleased to be able to help 2020 take these projects through planning to a successful result last year, paving the way for the subsequent financial close.”
Scotland is already providing over a third of the UK’s renewable electricity at a time where there is an increasingly tight gap between electricity supply and demand. Airies will produce 7.05MW and Sobie will produce 39.9 MW. Once operational, the project will make a valuable contribution to Scotland’s ambitious renewable energy targets, providing clean, green electricity.
Alan Baker, chief operating officer of Velocita, said “These are only two of four projects that we plan to secure project financing on during 2016 in advance of the proposed Renewables Obligation closure deadline.”