Mainstream’s £2bn offshore Scottish wind power project nears construction phase

26 January 2016 (Last Updated January 26th, 2016 18:30)

Ireland-based Mainstream Renewable Power is in exclusive talks with an InterGen-led consortium to close a £2bn deal in Scotland for a 450MW offshore wind farm construction.

Ireland-based Mainstream Renewable Power is in exclusive talks with an InterGen-led consortium for closing a £2bn deal in Scotland for a 450MW offshore wind farm construction.

Besides the Dutch power firm Intergen, other consortium members include Siemens Project Ventures, the Marguerite Fund and Infrared Capital.

Following the closure of the deal, the firm will be developing the Neart na Gaoithe wind farm in the Outer Forth Estuary in the North Sea.

The project is already backed with a 15-year Contract for Difference (CfD), which was secured from the UK’s National Grid in March 2015.

"This £2bn infrastructure project … will create more than 500 jobs during construction and more than 100 permanent jobs during the 25-year operational phase."

Offshore planning consent from Scottish ministers was secured by Mainstream Renewable Power in October 2014.

It is expected to be fully commissioned by 2020 following a judicial review by Scottish courts, which is currently underway.

Mainstream COO Andy Kinsella said: "This £2bn infrastructure project has very significant benefits for Scotland. It will create more than 500 jobs during construction and more than 100 permanent jobs during the 25-year operational phase.

"More than £540m will be directly spent in Scotland during the construction phase and a further £610m will be spent during the operational phase.

"Neart na Gaoithe will generate the cheapest electricity from any offshore wind farm in the UK."

Around 25% of the project costs will be met with equity, while £1.5bn of debt has been secured for the development, reports gcaptain.com.

Kinsella added: "All consents have been received; the CfD was awarded; the technology and construction contractors are in place and, very significantly, the required debt funding for the project has been sourced from commercial banks."