A senior debt facility of up to £11.4 million has been secured from Santander UK plc (“Santander UK”), with the balance of funding met equally between GreenPower and Thrive
Rob Forrest, CEO of GreenPower, said “We are delighted to have partnered with Thrive Renewables on the development and delivery of the Drumduff Wind Farm. This is another significant investment we are making to contribute towards both the Scottish and UK renewable energy targets. Raising project finance in the current regulatory environment in the UK is difficult and the completion of this deal reflects the strength of the GreenPower and Thrive teams and demonstrates the commitment and experience that Santander UK brings to this sector”
Matthew Clayton, MD of Thrive Renewables, said “Investing in this three turbine wind project located on a disused coal mining site meets our objective of sensitivity siting renewable energy. The project was initiated by a family based developer, we are pleased to have been able to take the project forwards navigating the regulatory uncertainty. Working with GreenPower, an experienced developer and operator of renewable energy projects has brought great benefit to the project, complimenting Thrive’s team. We are now all focused on working with the team of suppliers to ensure that the project can commence delivery of renewable power this summer.”
The Santander deal team comprised Katie Bagshaw and Howard Whitehead. Howard Whitehead, Head of Infrastructure & Renewable Energy, Santander Corporate & Commercial, said “We are delighted to have been given the opportunity to support GreenPower and Thrive in the delivery of this high quality wind project. Drumduff will deliver significant environmental and economic benefits, and we are pleased to have been able to deliver a bespoke funding package to support its successful delivery.
This will be the first project for either GreenPower or Thrive using GE turbines. The project will generate approximately 20,200 MWh per annum, equivalent to the yearly demand from 5,120 homes*.
* Based on an average UK domestic electricity consumption of 3,938kWh/annum (‘Energy Consumption in the UK’, November 2016, Department for Business, Energy and Industrial Strategy)
Notes to Editors:
For more information please contact: James Simpson, GreenPower Finance Director
Email James@greenpowerinternational.com or telephone: 01259 272158
Drumduff Wind Farm
The Drumduff Wind Farm, located to the north of Blackridge in West Lothian, will use three GE 2.85MWturbines. The project will be linked to Scottish Power’s network via a 5.5 kilometre grid connection, the majority of which is buried cable.
Project delivery was delayed during early 2016 whilst the UK government introduced new legislation to bring to an end the Renewables Obligation, which created significant investment uncertainty. Construction is now expected to commence in January 2017 and turbine deliveries and energisation of the Wind Farm are expected to take place in May 2017 to allow the project qualify for Renewables Obligation under the grace period.
Civil construction work will be undertaken by A E Yates Ltd, electrical works by Athena PTS and a power off take contract has be entered into with Statkraft. Project management was undertaken by GreenPower Developments Ltd and engineering support, technical and financial advice are being provided by SgurrEnergy, OST Energy Ltd, Greenbank and AMEC Foster Wheeler. Pinsent Masons LLP acted for Santander UK plc and Eversheds LLP acted for Green Breeze Energy Limited in the project financing.
GreenPower (International) Ltd
GreenPower is a thriving independent Scottish company, based in Alloa, in central Scotland. The company was formed in 2000 and is now one of the leading independent renewable energy developers in the UK.
GreenPower has consented over 260MW of clean renewable energy capacity, including wind, hydro and solar power.
Thrive Renewables plc
Now independent, Thrive Renewables was established over 20 years ago by leading ethical bank Triodos Bank, and has more than 6,300 investors and more than 80MW of renewable generation capacity under management. In 2015 Thrive Renewables delivered enough clean energy to meet the energy demand of 41,187 UK homes’ equivalent and saved 72,876 tCO2e emissions.
Thrive Renewables provides an opportunity to invest directly in a portfolio of renewable energy projects, delivering financial returns and contributing to tangible greenhouse gas emission reductions. Thrive Renewables also works with developers and innovators to develop and build new sources of renewable energy to create a smart energy system fit for the future. www.thriverenewables.co.uk
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. As at 30 June 2016, the bank serves around 14 million active customers with c. 20,000 employees and operates through 841 branches (which includes 58 university branches) and 69 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.