19 Jun 2017 | 02.13 pm
UK VC Invests €9m In Kerry Windfarm
Vayu will acquire the electricity generated by the turbines to power homes
19 Jun 2017 | 02.13 pm
A project to construct a wind farm in Curraghderrig in Kerry has received an €8.7m investment from VC firm Scottish Equity Partners (SEP). The project is being developed by Rengen Power.
SEP made the investment in the wind farm through its Environmental Capital Fund (ECF), which is targeted at infrastructure projects in the energy sector. Curraghderrig is located on the south west coast, near the village of Asdee, and will operate two 2.3 megawatt Enercon E-70 turbines, each with a hub height of 64 metres.
Ground work and turbine installations have now been completed on the site, with the turbines due to be operational by September 2017. Enercon is constructing the turbines under an engineering, procurement and construction contract, after which it will assume operational and maintenance responsibilities for the wind farm under a 15-year contract.
The windfarm at Curraghderrig will generate sufficient renewable energy to power more than 3,100 homes. ECF has provided equity funding for the project alongside a long-term senior debt facility from Bank of Ireland.
Rengen, a specialist renewables development and management business, will provide long-term management services to the project, as well as retaining an economic interest in its success. Gas and electricity supplier Vayu has entered a power purchase agreement to acquire all the electricity produced at Curraghderrig.
Peter Bachmann, a director in SEP’s infrastructure team, said: “Ireland is a key market for the development of new wind assets, particularly in light of the supportive mechanisms in place under the Government’s REFIT system.”
He continued: “The transaction represents ECF’s first investment in Ireland and the start of a development partnership with Rengen designed to grow ECF’s portfolio of high-performing wind assets across both Ireland and the UK. At Curraghderrig, we will have market leading wind turbines in a proven high wind location.”
The CEO of Rengen Power, Eugene Keane, added: “This is an important milestone in our developing relationship with the infrastructure team at Scottish Equity Partners. Rengen Power is now actively pursuing other greenfield and development opportunities across Ireland. We are excited about the potential of these opportunities and look forward to delivering large scale projects in due course.”
Rengen Power specialises in renewable energy industry developments. The development company is based in Ireland and has partnered with Longi Group and Premier Green Energy to extend its reach.