Moray, Scotland [RenewableEnergyWorld.com] RES has confirmed that it has reached a financing deal for its Hill of Towie Wind Farm, in Moray, Scotland. The arrangement with Lloyds Banking Group and BNP Paribas for construction of the wind farm is the first large scale project to benefit from the EIB Intermediated UK Onshore Wind Scheme.
The Banks have established a portfolio facility to support RES in the development of up to 300 megawatts (MW) of wind farm projects in the UK and France over the next three years. Further projects are expected to be added to the portfolio throughout the course of 2010.
The total long term project finance facilities for Hill of Towie were £76 million, with a debt tenor of 17 years. Lloyds Banking Group will act as agent bank to the portfolio and BNP Paribas as issuing bank.
The Hill of Towie Wind Farm, at 48 MW, will be RES’s largest onshore project in the UK to date. The project will be constructed and owned by RES and will use 21 Siemens 2.3MW wind turbines, which are due to be delivered in summer 2011, and the power will be purchased by Scottish Power.
Hill of Towie Wind Farm is expected to be fully commissioned by spring 2012, following the National Grid’s queue advancement process, which saw the grid connection date brought forward from 2018. Once operational, Hill of Towie will make a significant contribution to Scotland’s ambitious renewable energy targets.
“Hill of Towie is one of the first major wind projects to be financed following the well documented difficulties in the financial markets. This financing demonstrates that robust, well developed projects can again secure financing, and provides positive signs for the industry as a whole. The wind farm will make a further important contribution to Scotland’s renewable energy capacity and security of supply. We look forward to welcoming Hill of Towie into RES’s growing portfolio of operational wind farms,” said Gordon MacDougall, RES’ UK & Ireland COO.