Major wind investment planned on back of Scots-Danish deal
A multi-million pound investment in onshore wind projects is in the pipeline after a Scottish renewables firm unveiled a major tie-up with a Danish energy group.
Edinburgh-based Locogen and Danish green energy giant European Energy are setting up a joint venture partnership to fund and develop a large portfolio of onshore wind projects in Scotland.
The partners said that the deal combines the” extensive experience and resources of European Energy with the local expertise of Locogen”.
The combined team is looking to develop a minimum of 800 megawatts (MW) of wind projects in the next five years. Together the projects will generate enough electricity to power 500,000 homes.
Copenhagen-based European Energy operates across 11 countries and constructs wind and solar farms. It has delivered 1,153MW of wind and 510MW of solar projects since being founded in 2004 and has invested some €2.3 billion (£2.07bn) in its renewable energy portfolio.
Locogen has provided development technical support for developers, buyers, lenders and borrowers for over 500MW of wind energy projects, mainly in Scotland, since its launch in 2009.
Daniel Badcock, managing director of European Energy’s newly formed UK arm, said: “Scotland is an excellent location to base our rapidly growing UK subsidiary and we wholeheartedly believe in the future of onshore wind in Scotland. We are proud to be supporting Scottish employment and the green industry with Locogen, in whom we have found a long-term, strong development partner. We look forward to delivering hundreds of megawatts of subsidy-free onshore wind projects in Scotland together over the coming years.”
Andrew Lyle, chief executive of Locogen, said: “In European Energy we have found a partner who shares our belief in the long-term value of onshore wind electricity generation in Scotland, developed responsibly with communities and our environment at heart.”
Projects Locogen are involved in include the community owned UistWind wind farm on North Uist which in September achieved a significant milestone as it generated enough electricity to power every home on the island.
European Energy’s current development pipeline totals 16 gigawatts (GW). Around 5GW of the pipeline consists of wind projects, 11GW is Solar PV and 150MW is battery storage.
Earlier this year the UK government removed an effective ban on new onshore wind projects by allowing schemes to compete for subsidies alongside other technologies including solar in the next round of the Contracts for Difference subsidy scheme for renewables.
A number of significant investments have been announced in the onshore wind sector in Scotland this year, including a £320m deal which will see Greencoat UK Wind acquire the South Kyle wind farm from Swedish developer Vattenfall when is completed.
The site, near to Dalmellington in East Ayrshire, will feature 50 turbines and will be capable of providing power to nearly 170,000 homes. The 240MW facility is expected to become operational in 2023. Vattenfall will operate the wind farm on behalf of Greencoat for a minimum of ten years, while its energy trading arm will purchase power for 15 years. Greencoat's other investments in Scotland include a significant stake in the huge Clyde wind farm in south Lanarkshire.
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