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EDP Renováveis S.A. (EDPR), through its subsidiary EDPR UK Limited, Diamond Generating Europe Limited (DGE) and ENGIE have announced that Moray Offshore Windfarm (East) Limited (MOWEL) has successfully secured financing for the construction of an 950 MW offshore wind farm.
Located in the Outer Moray Firth off the east coast of Scotland, the project is currently owned by EDPR (43.3%), Diamond Green Limited, which is partly owned by DGE (33.4%) and ENGIE (23.3%). DGE is a wholly owned subsidiary of Mitsubishi Corporation.
Project financing is being provided by a syndicate of 16 commercial banks as well as EKF, Denmark’s Export Credit Agency (EKF) and the Japan Bank for International Cooperation (JBIC).
The financing includes a GBP2.1 billion (US$2.68 billion) debt facility and GBP500 million (US$638.9 million) of ancillary facilities. Financial close is expected to occur before the end of 2018.
In September 2017, MOWEL was awarded a 15-year Contract for Difference (CfD) by the UK’s Department for Business, Energy & Industrial Strategy (BEIS) for the delivery of 950 MW of offshore wind generation at GBP57.5 (US$73.47) per MWh (2012 tariff-based). This represents a significant cost reduction compared with similar projects under construction today (typically GBP140 (US$178.9) per MWhr).
Comprised of 100 MHI Vestas V164-9.5 MW offshore wind turbine generators, the wind farm is expected to be operational by 2022. It is expected to meet the electricity needs of around one million average UK households.
Santander Corporate & Investment Banking acted as financial advisor to EDPR, ENGIE, DGE and MOWEL.