UK-based Green Investment Bank (GIB) and global investment firm KKR have agreed to invest £82.7m in Blue Energy’s Blackcraig wind farm, located in Dumfries and Galloway.
The investment in the 52.9MW Blackcraig wind project will be made through a London-based investment firm Temporis Capital.
Out of the total financial package, GIB will contribute £49.5m towards the project.
Construction of the wind farm will be initiated from January next year and is scheduled to be completed by March 2017.
Upon completion, the farm is expected to generate 150GWh of electricity per year, which is enough to supply power to more than 37,500 households.
The wind project is also expected to reduce CO2 emission roughly by 25kt annually; which is equal to eliminating 11,200 cars off the road.
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By GlobalDataGerman company Siemens will supply 23 2.3MW wind turbines to the project.
Blue Energy has set up a community fund to support the wind farm during its lifespan of 25 years. Local representatives will manage the farm.
UK Green Investment Bank investment banking head Ed Northam said: "The Blackcraig wind farm has the capacity to provide 37,500 homes with renewable energy for 25 years.
"We congratulate Blue Energy on reaching financial close and are pleased to play our part in helping the project to happen."
GIB, which was established to help transforming UK’s economy to a greener economy, has acquired 25% stake in Galloper offshore wind farm in October.
Apart from GIB, RWE Innogy, Siemens Financial Services and Macquarie Capital are also involved in the 336MW Galloper wind project.
Blue Energy CEO Christopher Dean said: "In what has been an eventful year for UK renewables we are delighted to secure this funding from Temporis, GIB and KKR.
"Whilst the funding environment remains challenging this financing completes a very successful year for Blue Energy who now have just over 250MW of onshore wind projects in construction throughout the UK."
