EDP Renovaveis, Diamond Generating Europe and Engie have secured finance to build the 950MW Moray East offshore wind farm off the coast of Scotland.
Project financing agreements have been signed with a syndicate of 16 commercial banks as well as with EKF, Denmark’s export credit agency, and the Japan Bank for International Cooperation.
The financing includes a £2.1bn debt facility and £0.5bn of ancillary facilities. Financial close is expected by the end of the year.
EDPR chief executive Joao Manso Neto said: “This is a massive step forward for this project, in which the consortium has placed all its trust.
“Given its size and characteristics, a deal of this magnitude marks a milestone for the financing of renewable energy on a global scale. We are delighted that our project is the star player.”
Diamond Generating Europe chief executive Keiichi Suzuki said: “DGE is extremely happy to have achieved this milestone in collaboration with EDPR and Engie.
“Moray East is our first offshore wind investment in the UK and our largest offshore wind project to date, and, as a UK-based company, we are proud to be part of this project.
“DGE, the power business platform of Mitsubishi Corporation across Europe, the Middle East and Africa, continues to pursue its mission of promoting a low-carbon society and providing affordable energy for everyone.”
Engie UK & Ireland chief executive Wilfrid Petrie said: “We are pleased to announce, together with our partners EDPR and DGE, the signing of the project financing agreements for this important renewable project.
“We look forward to proceeding to financial close and progressing with the construction of the wind farm. Engie is committed to investing in Scottish energy infrastructure and using its expertise to deliver low carbon generation around the world.”
EDPR owns 43.3% of Moray East, with DGE holding a 33.4% share and Engie the remaining 23.3%.
Santander Corporate & Investment Banking acted as financial advisor to the developers.
Moray was awarded a 15-year Contract for Difference in September 2017 and is scheduled to be operational in 2022.
MHI Vestas has signed a conditional agreement for the supply of turbines to the project.