BayWa r.e. has completed the financing of its Broken Cross Wind Farm with the major retail and commercial bank NatWest Plc. Broken Cross is currently being constructed in South Lanarkshire southeast of Glasgow, Scotland and will consist of nine turbines, with a total planned capacity of 43.2 MW. The total financing volume for this project is around €46 million. As recently announced, a 6 year PPA for the project was signed between SmartestEnergy Limited and BayWa r.e. at the end of last year.
The Broken Cross Wind Farm site used to be an opencast coal mine, making it a perfect example of the UK’s transition away from fossil fuels to renewable energy. Throughout the construction of the wind farm, preserving and restoring the land was prioritised to provide and keep habitat to a variety of local flora and fauna. Broken Cross Wind Farm will also provide an annual benefits package of €5,800 per installed megawatt to the local community.
Christine McGregor, Managing Director at BayWa r.e. UK Ltd., said:
“We are pleased to partner with NatWest for the long-term financing of the Broken Cross Wind Farm. Reaching financial closure for the project represents an important milestone, demonstrating that Scottish onshore wind assets, such as Broken Cross, continue to be attractive investments propositions. We are committed to supporting the UK government’s net zero ambitions by providing more clean energy to households and businesses.”
Lyudmil Banev, Project Finance Director at NatWest added:
“We have been delighted to collaborate with the BayWa r.e. team to repurpose an opencast coal mine for the construction of an onshore wind farm in an attractive area for wind generation. Our focus is on working closely and creatively with our clients to navigate new frontiers in order to find more ways to support the energy transition. Broken Cross is an example of that and demonstrates well NatWest’s continued commitment to the UK renewable energy sector and our capability in UK wind in particular, as well as our ability to deploy our balance sheet effectively.”
The construction on the wind farm began in October 2022. Currently, turbines are being installed on site and the wind farm is planned to be commissioned this year. Finance arrangements will remain in place through the construction and operational phases of the project.
Michael Kohn, Global Head of Project Finance at BayWa r.e. commented:
“One key success factor for the energy transition is the development of an ever-increasing number of renewable energy projects each year. As one of the largest solar and wind developers in Europe, BayWa r.e. secures financial resources for renewable energy projects in a constantly changing market environment on a regular basis – Broken Cross is an excellent example for that.”
Project financing was supported by legal advisers Shepherd and Wedderburn LLP, which acted for BayWa r.e., and DLA Piper UK LLP, which acted for the funder. The transaction was also supported by Wood and QMPF.