Renewables developer OnPath Energy has achieved financial close on a 33.4MW Scottish onshore wind project, which has a subsidy-free, long-term route to market.
The six-turbine Mill Rig Wind Farm, which sits between Strathaven and Darvel in South Lanarkshire, will feature some of the UK’s most advanced turbines to maximise energy generation and efficiency.
NatWest provided project financing for the asset, with the long-term agreement including a term loan and other ancillary facilities to support the project throughout its construction and operational life.
OnPath Energy has financed the project to date and civil engineering works are already at an advanced stage, with essential infrastructure work completed and all the turbine foundations constructed, helping to maintain the delivery programme.
Oliver Hartley, finance director at OnPath Energy, says: “Reaching financial close marks the culmination of many months of hard work across all of our project teams and has been achieved thanks to a collaborative approach across our key suppliers, advisors and lenders, harnessing the strong relationships we’ve developed.
“Being part of the Brookfield ecosystem supports us through access to capital and PPA markets, which in the case of Mill Rig includes securing a long-term offtake agreement with a US technology company as well as finance from NatWest.”
As part of the UK developer’s ‘OnPath Together’ development approach, the project is expected to directly support around 300 jobs through its construction period, with many more generated indirectly through the wider supply chain.
OnPath Energy has committed to prioritising local contractors and businesses, with £91 million invested within 60km of the site being spent locally throughout its development, construction and operation.
It was acquired in December 2023 by Brookfield Asset Management, one of the world’s largest owners and operators of renewable power plants.
Brookfield has more than 46,000 megawatts of operating capacity worldwide, equivalent to two-thirds of the UK’s renewable energy capacity.
South of Scotland wind farm construction begins
Construction has begun on a major wind farm in the south of Scotland, which will generate enough electricity to power around 335,000 homes.
The Sanquhar II Community Wind Farm was paused in 2023 due to tax decisions by the previous UK Government but now has the green light.
Developer CWP Energy said the project can now proceed to financial close following last month’s decision by the UK Labour Government to drop its plans for ‘zonal electricity pricing’.
Around 100 construction staff are now working on site at Sanquhar II, which will deliver more than £800 million in investment over its 40-year operational life.
The 44-turbine wind farm, which received planning consent from the Scottish Government in August 2023, is located in Dumfries and Galloway and East Ayrshire. It has been nearly 10 years in planning.
Sanquhar II will be the fourth largest onshore wind farm in the UK once complete, and will offset around 540,000 tonnes of carbon dioxide every year.
The project’s EnVentus platforms and powerful V162 turbines are being supplied by Vestas.
These will be the first turbines of this type to be installed in Scotland when erected next year. Vestas is being supported by Jones Bros Civil Engineering UK.
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