Muirhall Energy will kick off construction of Scotland’s first subsidy-free wind farm this week after reaching financial close on the 46MW Crossdykes in Dumfries and Galloway.
Close Brothers Leasing will provide project finance for the scheme consisting of 10 Nordex turbines with 176.5-metre tip heights.
First power from the wind farm located near Lockerbie is expected in September 2020.
Close Brothers Leasing head of energy finance Chris Rodgers said the Manchester outfit has provided Muirhall with a “financial lending product that allows flexibility in contracting the sale of the electricity generated”.
The Lanarkshire developer is progressing further subsidy-free wind projects in its portfolio that “can be made to work on a similar model,” said Muirhall managing director Chris Walker.
“With more than 300MW to begin construction over the next three years, this an exciting time,” he added.
Muirhall has offered the local community the chance to buy up to 10% of Crossdykes via a share offer, with nearby groups currently assessing how best to invest in the wind farm.
“We have had tremendous support from the communities around the wind farm and I’m keen to continue to work closely with them to allow them to realise the opportunity offered by shared ownership,” said Walker.
The news was first reported in the latest issue of the subscriber-only newsletter reNEWS.
Scottish Government Minister for Energy, Connectivity and the Islands Paul Wheelhouse said: “I am delighted that Muirhall Energy have reached financial close on their 46MW Crossdykes development, and are in the race to be the first subsidy-free onshore wind development in Scotland, with construction beginning today.
“This is a landmark moment for onshore wind in Scotland, in fulfilling a key policy objective we set within Scotland’s Energy Strategy, and I very much hope this will be followed by many more similar developments as we seek to address the climate emergency.
“The Scottish government strongly supports onshore wind, and recognises the positive role it plays in our energy mix, net-zero ambitions and to our economy.
“A price-stabilisation mechanism would allow far more onshore wind projects like Crossdykes to be fully realised, and allow more consumers access to the cheapest form of electricity generation at scale.
“UK government must re-consider the exclusion of ‘established technologies’ from the Contract for Difference auctions framework in order to deliver the significant benefits onshore wind can offer.”