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BayWa r.e. has finalized financing for its Broken Cross Wind Farm with NatWest Plc. Located in South Lanarkshire near Glasgow, Scotland, the farm will feature nine turbines with a total capacity of 43.2 MW. The financing, totaling around €46 million, supports the project’s development. A 6-year Power Purchase Agreement (PPA) was signed between SmartestEnergy Limited and BayWa r.e. last year.
Formerly an opencast coal mine, the Broken Cross site reflects the UK’s shift from fossil fuels to renewable energy. During construction, emphasis was placed on land preservation and restoration to sustain local flora and fauna habitats. The wind farm will offer an annual benefits package of €5,800 per installed megawatt to the community. Construction commenced in October 2022, with turbines currently being installed. The wind farm is scheduled for commissioning this year, with financing arrangements in place throughout construction and operation.
Christine McGregor, Managing Director at BayWa r.e. UK Ltd., added, “We are pleased to partner with NatWest for the long-term financing of the Broken Cross Wind Farm. Reaching financial closure for the project represents an important milestone, demonstrating that Scottish onshore wind assets, such as Broken Cross, continue to be attractive investments propositions. We are committed to supporting the UK government’s net zero ambitions by providing more clean energy to households and businesses.”
Lyudmil Banev, Project Finance Director at NatWest said, “We have been delighted to collaborate with the BayWa r.e. team to repurpose an opencast coal mine for the construction of an onshore wind farm in an attractive area for wind generation. Our focus is on working closely and creatively with our clients to navigate new frontiers in order to find more ways to support the energy transition. Broken Cross is an example of that and demonstrates well 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.”
Michael Kohn, Global Head of Project Finance at BayWa r.e. commented, “One key success factor for the energy transition is the development of an ever-increasing number of renewable energy projects each year. As one of the largest solar and wind developers in Europe, BayWa r.e. secures financial resources for renewable energy projects in a constantly changing market environment on a regular basis – Broken Cross is an excellent example for that.”
