The UK’s National Wealth Fund (NWF) has approved a loan of approximately £62 million to support the construction of a six-turbine wind farm near Kirkwall in Orkney, a move aimed at advancing clean energy in Scotland and ensuring long-term financial resilience for Orkney Islands Council.
The 28.8-megawatt (MW) Quanterness project will export electricity to the national grid and is expected to generate annual surpluses of over £3 million. According to the NWF, the wind farm could deliver a cumulative benefit of around £120 million over 25 years, supporting public services across the islands.
“This is the latest stage in what is an immense project for our council, not only in its scale and ambition but also in its transformative impact on our community and the services we provide,” said Heather Woodbridge, Leader of Orkney Islands Council. “The Quanterness project – as well as supporting the interconnector – will provide the council with much-needed income to support vital services.”
The project has been in development since 2019 and was unanimously backed by elected officials earlier this year. Construction is scheduled to begin in spring 2027, following the award of contracts to Nordex for turbine design, supply, transport, installation, and a 25-year operations and maintenance agreement.
Quanterness will connect to Scottish and Southern Electricity Networks’ (SSEN) planned interconnector, which will link Orkney to the Scottish mainland to enable energy export.
“This important project will allow the council and the community to contribute significantly to Scotland’s, and the broader UK’s, clean energy ambitions,” said Lorna Pimlott, Managing Director of Local Authority Advisory and Lending at the National Wealth Fund. “Delivery of the wind farm will help create employment and investment opportunities across Orkney and the wider region.”
The NWF said the loan offers flexible, long-term financing, allowing the council to progress the project without drawing further on its Strategic Reserve Fund.
A £144,000 annual community benefit fund will also be established, with 60% allocated to the Kirkwall and St Ola Community Council and the remainder shared among 19 other community councils across the Orkney Islands.
UK Chancellor of the Exchequer Rachel Reeves welcomed the investment, stating: “This loan will provide clean energy for homes and businesses to strengthen Scotland’s energy security for years to come. This is just one of billions of pounds worth of investments being announced today at our Regional Investment Summit.”
