Total project funding package, which is a combination of equity, debt and grant, will exceed £50 million (US$82.8 million). Funding syndicate members comprise the UK Government through the Department of Energy & Climate Change, Scottish Enterprise via the Renewable Energy Investment Fund (REIF) Highlands & Islands Enterprise, the Crown Estate, and Atlantis.
The equity investment by Scottish Enterprise via the Renewable Energy Investment Fund values the MeyGen Project at £51 million.
The first stage (Phase 1A) of the project will include the installation of 4 x 1.5 megawatt turbines offshore as well as the construction of all onshore infrastructure to support the project, including a substation, a grid connection and the installation of power export cables. Three turbines will be supplied by Andritz Hydro Hammerfest and one Lockheed Martin-designed turbine supplied by Atlantis.
Construction work of the Phase 1A is expected to commence in Q4 2014 with first power to the grid and revenues earned in H1 2016.
When fully completed, the project will include 269 turbines submerged on the seabed, generating enough power for almost 175,000 homes in Scotland. The first phase of the project (61 turbines / 86MW) is expected to provide enough electricity for 42,000 homes in Scotland.
With many tidal project leases having been secured throughout the UK and around the world by various developers, the financial close of MeyGen is likely to be a catalyst for the emergence of a new asset class of renewable energy generation, making this an industry defining event.