The Delabole wind farm will be repowered, replacing its ageing turbines with more efficient ones under an £11.8m deal announced by the Good Energy Group.
The wind farm, which sits on the outskirts of one the highest villages in Cornwall, England, began generating electricity in 1991.
The package includes £9.6m in debt finance from the Co-operative Bank and £2.2m in equity from Good Energym, and will see the installation of four more effective Enercon turbines to replace the ten Vestas ones.
The project is expected to be completed by the end of 2010.
Once complete, the wind farm's capacity is expected to rise some 2.5 times to around 9.2MW – enough to power over 7,800 homes.
Good Energy shares were up 3 pence or 5.5% at 58 pence late on Monday, reports Reuters.