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Vattenfall has given the go-ahead to a 240MW onshore windfarm in Scotland, saying it will begin construction once the government’s coronavirus restrictions are lifted.
The South Kyle windfarm, comprising 50 turbines, and will be located close to Dalmellington on the border between Dumfries and Galloway and East Ayrshire.
The Swedish state-owned energy company will build and manage it on behalf of the investment fund Greencoat UK Wind, which has agreed to buy the windfarm upon completion for £320 million. Greencoat will then sell power back to Vattenfall under a 15-year power purchase agreement (PPA).
Vattenfall said it is continuously monitoring the coronavirus restrictions, and whilst the exact timetable for construction has yet to be confirmed, it currently expects the windfarm – it’s largest in the UK to date – to be operational in early 2023.
The windfarm will not receive any subsidies and has already secured consent. As part of the agreement, the local communities of Dalmellington, Patna, New Cumnock and Carsphairn will be given £38 million to invest over its lifetime.
Vattenfall head of market development for UK onshore, Frank Elsworth, said: “We are delighted that our agreement with Greencoat UK Wind means we can fulfil our commitments to the local community and contribute to major investment in the area.
“Onshore wind in Scotland has the potential to make a significant contribution to reaching net zero and is the cheapest form of renewable energy generation that brings us closer to that goal.”
Greencoat UK Wind chairman Tim Ingram said: “South Kyle is in close proximity to a number of other wind farms already owned by Greencoat UK Wind, and we are confident it will be another high-quality addition to our portfolio.”
“We are pleased with the transaction, which will bring a large-scale subsidy free wind farm under our ownership,” added Laurence Fumagalli of Greencoat Capital.
“While we continue to expect the majority of our portfolio to comprise ROC [Renewables Obligation Certificate] accredited assets, the scale of our portfolio and balance sheet allows us to acquire a combination of different types of UK wind farms, such as South Kyle, and thereby find best value for shareholders.”
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