Deal struck for £320m wind farm in south-west Scotland

Swedish state-owned energy company Vattenfall will build a £320m wind farm in Scotland after a deal with infrastructure fund Greencoat, the two firms said.

The South Kyle site, which is around 5km from Dalmellington and roughly halfway between Glasgow and Dumfries, will supply enough electricity for around 170,000 homes.

Vattenfall will install 50 turbines and supply 235 megawatts (MW) of power to the grid, with the wind farm due to begin operating in 2023.

It already has permission for the site.

Vattenfall’s head of wind Gunnar Groebler said: “South Kyle will significantly contribute to the renewable energy production in Scotland.”

The new wind farm will pump around £38m into local schemes through its community benefit programme over its lifetime, bosses said.

Vattenfall chief executive Magnus Hall said: “The planned construction of the South Kyle Wind Farm shows our commitment to the United Kingdom and its transition to climate neutrality, as well as delivering on Vattenfall’s goal to enable fossil-free living within one generation.”

However, construction at the site may have to wait until there is more clarity on the coronavirus lockdown, bosses said.

Vattenfall said: “Construction of the wind farm will begin once it is appropriate to do so. Therefore, a timeline for construction is yet to be confirmed.”

The new buy adds to Greencoat’s portfolio of 26 operating wind farms across the UK, with almost one gigawatt of generating capacity.

Laurence Fumagalli, of Greencoat Capital, said: “We are pleased with the transaction, which will bring a large-scale, subsidy-free wind farm under our ownership.”

Greencoat will pay Vattenfall £320m to build the site, and run it for a decade.

“We are delighted to enter into an agreement with Vattenfall, our fifth major utility partner,” said Greencoat’s Tim Ingram.