BayWa's renewables division has successfully completed the financing arrangements for its Broken Cross wind farm project in Scotland, in collaboration with NatWest.
Located in South Lanarkshire, the Broken Cross wind farm is currently under construction and is set to feature nine turbines with a total planned capacity of up to 43.2MW. The installation of turbines is underway, with the wind farm scheduled for commissioning later this year.
“Reaching financial close represents an important milestone, demonstrating that Scottish onshore wind assets, such as Broken Cross, persist to be attractive investments propositions,” said Christine McGregor, Managing Director at BayWa r.e. UK. “Scotland is an incredible source of onshore wind energy for the UK, and we are committed to supporting the government's net zero ambitions, by providing more clean energy to UK households and businesses.”
NatWest provided financing totaling approximately £40 million for the project, supporting BayWa r.e.'s commitment to expanding renewable energy infrastructure in the UK.
Lyudmil Banev, Project Finance Director at NatWest, underscored the bank's commitment to renewable energy financing and its role as the sole lender, arranger, and hedging bank for the Broken Cross project. Banev highlighted NatWest's capability and flexibility in supporting key transactions in the UK renewable energy market.
“The deal demonstrates 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 and flexibly to underpin important transactions for the market on a sole lender basis,” said Banev.
Recently, BayWa r.e. secured a six-year power supply agreement for the Broken Cross project with SmartestEnergy, further solidifying its operational framework.
Prioritizing environmental stewardship, the development of the Broken Cross Wind Farm involved the preservation and restoration of land previously used as an opencast coal mine. This approach ensures the protection and enhancement of local flora and fauna habitats.
Additionally, the Broken Cross Wind Farm will deliver substantial community benefits, with an annual package of £5000 per installed megawatt allocated to the communities of Coalburn, Lesmahagow, Douglas Water, and Rigside. This contribution, totaling £216,000 per year and indexed linked, underscores BayWa r.e.'s commitment to fostering positive relationships with local communities.
The financing arrangement for the Broken Cross wind farm was facilitated by legal advisors Shepherd and Wedderburn, representing BayWa r.e., and DLA Piper UK, acting on behalf of the funder, ensuring the successful realization of the project.