Four new run-of-river hydro-electric projects in the Scottish Highlands have been funded by the Renewable Energy team at Clydesdale Bank, owned by Virgin Money.
Developed, owned and operated by Vento Ludens, the portfolio is currently under construction, with the first project starting to export electricity to the grid in December 2020 and the remaining three due to come on-line by mid-2021.
Once fully operational, the portfolio is expected to generate enough electricity to power more than 2,800 average UK homes, saving more than 4,300 tonnes of CO2 emissions each year. The portfolio will also contribute c.£16k per annum to local community projects.
Clydesdale Bank provided £9.3m of long term project finance loans, with the balance of project costs met by Vento Ludens.
The portfolio is the result of a tender process run by Forestry Commission Scotland (now Forestry and Land Scotland) in 2014.
The portfolio has a built capacity of 3.5MW, meaning Vento Ludens now owns and manages c.24MW of wind, solar and hydro projects in the UK.
Alan Mathewson, Head of Project Development at Vento Ludens said:
“With hindsight we chose a very challenging time to build and finance this portfolio. Despite these challenges, which included having to cease construction activity earlier in the year, we remain on track to complete construction on time. Alongside other key stakeholders, we would like to thank the team at Clydesdale Bank for their flexibility and support. We look forward to a productive long term relationship with them”.
Keith Wilson, Head of Renewable Energy at Clydesdale Bank, said:
“As a strategically driven organisation, we are delighted to have added yet another renewable energy portfolio to our growing loan book at the end of what has been a very challenging year. It has been a pleasure working with all the team at Vento Ludens and I would like to thank them for choosing to finance their portfolio with Clydesdale Bank”.
We are delighted to have added yet another renewable energy portfolio to our growing loan bookKeith Wilson, Head of Renewable Energy at Clydesdale Bank