With financing secured for construction of the project, one of the UK’s largest offshore windfarms – made famous by its groundbreaking £57.5/MWh contract for difference – is approaching a final investment decision.
EDP Renováveis (EDPR), through its subsidiary EDPR UK Limited, Diamond Generating Europe Limited (DGE) and Engie have confirmed that Moray Offshore Windfarm (East) Limited (MOWEL) has secured financing for constructing its 950-MW offshore windfarm.
The project is currently owned by EDPR (43.3%) and Diamond Green Limited, which is partly owned by DGE (33.4%) and Engie (23.3%). Santander Corporate & Investment Banking acted as financial advisor to EDPR, Engie, DGE and MOWEL.
The project financing agreement was signed on 28 November 2018 with a syndicate of 16 commercial banks as well as EKF, Denmark’s Export Credit Agency and the Japan Bank for International Cooperation.
The financing includes a £2.1Bn (US$2.7Bn) debt facility and £0.5Bn 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 by the UK’s Department for Business, Energy & Industrial Strategy to deliver 950 MW of offshore wind generation at £57.5/MWh (2012 tariff-based). The windfarm is expected to be operational by 2022.
Engie UK & Ireland chief executive Wilfrid Petrie said, “We are pleased to announce, together with our partners, the signing of the project financing agreements for this important renewable project. We look forward to proceeding to financial close and progressing with the construction of the windfarm.”
DGE chief executive Keiichi Suzuki said, “DGE is extremely happy to have achieved this milestone. Moray East is our first offshore wind investment in the UK and our largest offshore wind project to date.”