Business

Bank of Ireland to help fund Scottish wind farm

Lender providing €65.9m towards Moray West development

Future revenue and electricity sales from Moray West are secured by a mixture of a UK government contract for difference and a corporate power purchase agreement, Bank of Ireland said. Photograph: Ben Birchall/PA Wire

Peter Flanagan
Mon Mar 11 2024 - 06:00

Bank of Ireland is one of several lenders to a wind farm off the coast of Scotland that, when complete, is forecast to provide enough power for some 1.3 million homes.

The lender is providing £56 million (€65.9 million) worth of financing for the Moray West wind energy project. The project, situated at least 22.5km off the east coast of Scotland near Aberdeen, gained planning permission in 2019, according to the project’s website. On completion, the project will occupy about 225sq km.

The Irish bank has “joined the international lending syndicate for the 882 megawatt (MW) wind farm, currently under development by Ocean Winds, a joint venture between EDP Renewables and ENGIE”, Bank of Ireland said in an emailed statement. “Construction is under way and the project is expected to be operational next year.

“Bank of Ireland is committed to working with customers, colleagues and society to support the transition to a resilient, net zero economy by 2050, in line with the Irish and UK governments’ ambitions and targets,” it added. “Our targets are to provide €15 billion of sustainability-related finance to households and businesses by 2025, and €30 billion by 2030. By the end of last year, we reached €11.1 billion, up from €8.2 billion at the end of 2022.”

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The bank is “well on track” to meet those 2025 and 2030 targets, according to its 2023 annual report, published last month.

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Future revenue and electricity sales from Moray West are secured by a mixture of a UK government contract for difference and a corporate power purchase agreement, the bank said.

“Bank of Ireland has been lending to onshore wind projects for many years, so our continued involvement in offshore wind is a very natural progression for us,” the firm’s chief executive of corporate and commercial banking, Gavin Kelly, said. “The UK has an established offshore market, and our participation in significant projects like Moray West will leave us well-placed to support the evolution of offshore wind in Ireland, where it will play an important role in decarbonising the economy.”

Numerous banks are investing in renewables as part of the wider green transition. Other lenders known to have offered finance to Moray West include Barclays.

Peter Flanagan

Peter Flanagan

Peter Flanagan is an Assistant Business Editor at The Irish Times

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