Intergen poised for Neart buyout

Mainstream Renewable Power is in exclusive discussions with a consortium led by InterGen to take its 450MW Neart na Gaoithe offshore wind farm off Scotland to financial close and into construction.

The consortium also includes Siemens Project Ventures, The Marguerite Fund and Infrared Capital, it was announced at the Scottish Renewables offshore wind conference in Glasgow.

The Neart na Gaoithe offshore wind farm secured a 15-year Contract for Difference (CfD) in March 2015 which gives the wind farm an inflation-linked strike price for electricity produced.

Mainstream said several PPA offers have been received and are under negotiation for the full output of the plant and for the full duration of the CfD contract.

The required debt funding for the project has been sourced from commercial banks, it added.

Scottish Ministers awarded offshore planning consent in October 2014. The project is expected to be fully commissioned and generating electricity by 2020 subject to the outcome of a judicial review currently under consideration by the Scottish courts.

Mainstream chief operating officer Andy Kinsella said: “This £2bn infrastructure project has very significant benefits for Scotland.

“It will create over 500 jobs during construction and over 100 permanent jobs during the 25-year operational phase.

“More than £540m will be directly spent in Scotland during the construction phase and a further £610m will be spent during the operational phase.

“All the building blocks are now in place to deliver this power plant into operation by 2020; all consents have been received; the CfD was awarded; the technology and construction contractors are in place and, very significantly, the required debt funding for the project has been sourced from commercial banks.”

Image: the wind farm will consist of Siemens 7MW units (Siemens)