Gaelectric raises €65m for growth

Renewable energy group Gaelectric has raised €65m in fresh loan funding, which will help finance the company’s plan to meet the energy needs of 85,000 homes by 2017.

The Dublin-headquartered energy generation and storage group is investing about €250m in developing its portfolio of 13 onshore Ireland energy projects over the next five years.

This loan facility will underpin the 164-megawatt wind portfolio, which should create sufficient generation capacity to power the energy needs of 85,000 homes and displace 262,000 tonnes of carbon dioxide per year.

Provided by Swedish group Proventus Capital Partners, the latest funding round will specifically finance the construction of Gaelectric’s 13.8-megawatt wind energy project at Carn Hill in Co Antrim.

“In our discussions with funders and investors, we have been able to provide clear visibility of a portfolio of projects which have been substantially de-risked and which will be commissioned by 2017,” said Gaelectric’s finance director Barry Gavin.

“This amount of generation capacity opens up a range of strategically important options.

“It will allow Gaelectric transition from being a pre-revenue, renewable energy development group to an energy development and operating group with significant assets in Ireland, producing renewable power, generating turnover and cash for the group and further returns for our shareholders and investors.”

Gaelectric has also concluded a framework agreement with leading German wind turbine manufacturer Enercon, which will see the latter’s technology deployed on all the Irish company’s sites covered by the current funding round.